TSM Reports Record Profits, Lifts Forecast - But Stays Cautious

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the AI Stocks Gaining Attention on Wall Street. On July 15, Reuters reported that TSMC is anticipated to post a 52% jump in second-quarter profit, reaching record levels. However, U.S. tariffs and a strong Taiwan dollar could weigh on its outlook.

Mario Morales, group vice president at research firm IDC, noted that AI-related demand and the growing foundry industry revenue may lead to TSMC’s sales growing by nearly 30%.

The contract chipmaker and key supplier to Nvidia and Apple was anticipated to report net profit of T$377.4 billion ($12.9 billion) for the three months through June 30, as per an LSEG SmartEstimate compiled from 21 analysts.

Subsequently, the company posted a nearly 61% year-on-year rise in second-quarter profit, hitting a record high of NT$398.27 billion, and surpassing estimates on the back of resilient demand for AI chips. The contract chip manufacturer guided third-quarter revenue between $31.8 billion and $33.0 billion, which is a 38% year-over-year increase.

According to TSMC CEO C.C. Wei, TSM anticipates its full-year 2025 revenue to rise by around 30% in U.S. dollar terms artificial intelligence growth and demand for its artificial intelligence technologies.

“The primary driver of growth for TSMC has been the robust demand for AI-related chips, particularly for the leading edge nodes below 7nm." -Brady Wang, associate director at Counterpoint Research.

However, potential headwinds from the trade policy of U.S. President Donald Trump, who has threatened steep “reciprocal tariffs” on Taiwan, are still a reality.

“Looking into second half of 2025 we have not seen any change in our customers behavior so far. However, we understand there are uncertainties and risk from the potential impact of tariff policies,” Wei said on Thursday.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.

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