TSMC forecasts 38% jump in third-quarter revenue after results beat on AI chip demand

Additionally, The world's largest contract chip manufacturer has benefited from the megatrend towards AI as it gains from ducing advanced cessors for clients including Nvidia and Apple (noteworthy indeed)

In contrast, Daniel Ceng | Anadolu | Getty ImagesTaiwan Semiconductor Manufacturing Company on Thursday reported a near 61% year-on-year rise in second-quarter fit, beating estimates, as demand for artificial intelligence chips stays strong, in this volatile climate

Additionally, Furthermore, 86 billion Second-quarter net fit hit a record high, according to Reuters

Additionally, TSMC's net revenue in the June quarter rose 38

ET on trading platform Robinhood, in this volatile climate

TSMC, the world's largest contract chip manufacturer, has benefited from the megatrend towards artificial intelligence as it manufactures advanced AI cessors for clients including Nvidia and Apple

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

However, In semiconductor nology, smaller nanometer sizes signify more compact transistor designs, which lead to greater cessing power and efficiency (quite telling), in today's market environment

TSMC said advanced chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC's total wafer revenue in the quarter. "Surging demand from the AI boom is highly sustainable in the near term, with AI still in its very beginning stages and continues to expand across industries," Wang added

However, the company faces potential headwinds from the trade policy of the U

President Donald Trump, who has threatened steep "recical tariffs" on Taiwan

Taiwan faces 32% tariffs announced in April and is in the midst of trade talks with the U. , according to local media reports

However, Trump earlier this month also warned of potential additional tariffs on semiconductors

Meanwhile, Export controls have also restricted TSMC's with China, as well that of its key clients such as Nvidia and AMD

Furthermore, However, amid a thawing of trade relations between Beijing and Washington, Nvidia and AMD said earlier this week that they had received government assurances allowing them to ship ducts to China

Other headwinds facing TSMC in the second half of the year include appreciation of the Taiwan dollar and potential order cuts from smartphone and PC clients due to global macro conditions, said Sravan Kundojjala, an analyst at SemiAnalysis specializing in global foundries.