Shares in Taiwan Semiconductor Manufacturing (TSM) rose Wednesday after the world’s largest chipmaker saw its second-quarter sales grow as the AI boom continues, driving global investment in data centers.
TSMC, the exclusive supplier of Nvidia (NASDAQ:NVDA) and Apple's (NASDAQ:AAPL) most advanced chips, reported June revenue of NT$207.9 billion. This contributed to a 40% growth in the June quarter, reaching NT$673.5 billion, exceeding the average projection of a 35.5% increase.
The company’s US-listed shares climbed 1.7% in premarket trading.
Orders for AI chips have helped offset weak smartphone sales, which are beginning to recover.
TSMC and other AI-related stocks in Taiwan have driven the Taiex Index up by more than 40% over the past year, even amid ongoing US-China geopolitical tensions surrounding the island.
In the US, the chipmaker's shares surged more than 77%, outperforming the broader market.