July 10 2024: Shares of Taiwan Semiconductor Manufacturing (TSMC) rose on Wednesday after the world’s largest chipmaker reported stronger-than-expected second-quarter sales, driven by the ongoing AI boom and increased global investment in data centers.
TSMC, the exclusive supplier of Nvidia (NASDAQ: NVDA) and Apple’s (NASDAQ: AAPL) most advanced chips, announced June revenue of NT$207.9 billion. This contributed to a 40% growth in the June quarter, reaching NT$673.5 billion, surpassing the average projection of a 35.5% increase.
As a result, TSMC’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 significantly boosted the Taiex Index by more than 40% over the past year, despite ongoing US-China geopolitical tensions surrounding the island.
In the US, the chipmaker’s shares surged more than 77%, outperforming the broader market.