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TSMC raises revenue outlook amid strong AI demand

TSMC boosts its revenue projections to 30% growth driven by increasing AI technology demand.

July 17, 2025 at 06:55 PM

Chip Maker TSMC's Stock Rises on Upbeat Outlook for Revenue, Strong AI Demand

Taiwan Semiconductor Manufacturing Co. updates its revenue growth projections amid strong AI demand.

TSMC boosts revenue outlook as AI demand surges

Taiwan Semiconductor Manufacturing Co. raised its full-year revenue growth forecast to around 30%, driven by strong demand for artificial intelligence technology. The chipmaker's CEO, C.C. Wei, made this announcement during the company’s second-quarter earnings call. TSMC's shares rose nearly 4% following the projection update, showing a positive market reaction. The company reported second-quarter earnings per share of 15.36 New Taiwan dollars, alongside a 39% year-over-year rise in revenue to NT$933.79 billion, exceeding analyst expectations.

Key Takeaways

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TSMC expects a 30% increase in full-year revenue due to AI demand.

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Second-quarter earnings surpassed analyst expectations significantly.

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The company aims for third-quarter revenue between $31.8 billion and $33 billion.

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TSMC's shares increased almost 4% after the revenue projection announcement.

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Earnings per share for Q2 were reported at 15.36 New Taiwan dollars.

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Investors are optimistic about TSMC's growth potential in the AI sector.

"We see full-year sales growth of around 30% in U.S. dollar terms."

TSMC's CEO C.C. Wei highlights the company's strong revenue forecast driven by AI demand.

"Second-quarter earnings came in higher than estimates, confirming our growth trajectory."

This statement by TSMC shows the company's success in the competitive market.

The increase in TSMC's revenue outlook reflects a broader trend in the semiconductor industry, where AI technology has become a significant growth factor. As more companies incorporate AI into their products, the demand for chips capable of supporting advanced computations is likely to rise. This positions TSMC not just as a leader in semiconductor manufacturing, but as a key player in the rapidly evolving tech landscape. The strong market reaction to its forecast reveals investor confidence in TSMC's ability to meet this demand.