TSMC lifts outlook as Q2 profits surge on continued AI chip boom

(Sharecast News) - Second-quarter results from semiconductor giant TSMC on Thursday reflected a continued boom in demand for AI infrastructure, with profits rising by nearly 80% year-on-year, as the company raised its outlook for the year. The company, officially known as Taiwan Semiconductor Manufacturing Company, reported dollar revenues of $40.2bn for the three months to 30 June, up 34% from the year before and 12% from the previous quarter. That was ahead of the $39.9bn expected by analysts.

Net income jumped 77% to NT$706.6bn ($21.9bn), helped by the gross margin topping expectations at 67.7% - the highest in over two decades. This was comfortably ahead of the consensus estimate of NT$624bn.

Looking ahead, TSMC now expects US dollar revenues to rise by "slightly above 40%". Previous guidance pointed to growth in excess of 30%.

"Our business in the second quarter was supported by strong demand for our leading-edge process technologies," said Wendell Huang, senior vice president and chief financial officer.

"Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology."

In a separate announcement, TSMC said it is planning to spend an additional $100bn in manufacturing capabilities in Arizona, taking its total US investment plans to $265bn.

In 2026 alone, the company raised its capital expenditure budget to $60bn-64bn.

Despite the blockbuster results, the stock ended more or less flat in Taipei at $48.58, albeit after a 38% surge so far in 2026 and a 77% jump over the past 12 months.