TSMC posts 39% jump in June quarter revenue, beats estimates on AI demand

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 39% year-on-year increase in revenue for the June quarter, exceeding analyst expectations and reinforcing optimism around continued investment in artificial intelligence infrastructure.

Based on monthly disclosures, consolidated revenue for the April–June period reached approximately NT$934 billion (US$32 billion).

That figure surpassed the average analyst estimate of NT$928 billion, as compiled by Bloomberg, and was also higher than TSMC’s own guidance range of US$28.4 billion to US$29.2 billion issued in April.

The company disclosed on Wednesday that June 2025 revenue stood at NT$263.71 billion (around $9.6 billion), marking a 17.7% decline from May 2025, but a 26.9% increase compared to June 2024.

Cumulatively, revenue for the first half of 2025 totalled NT$1,773.05 billion (around $60.7 billion), representing a 40% increase year-on-year, TSMC said in a filing.

AI spending supports continued growth

The revenue surge comes amid sustained global demand for chips used in AI applications.

TSMC is the exclusive supplier of advanced chips for Nvidia Corp, whose graphics processing units are central to training large language models, and also manufactures processors for Apple.

Investor sentiment toward AI-linked stocks has rebounded after a brief cooling period earlier this year.

Concerns were raised earlier this year when Chinese firm DeepSeek questioned the necessity of continued aggressive spending on AI data centers by firms such as Meta Platforms and Alphabet.

However, renewed interest was evident this week as Nvidia became the first company to surpass a US$4 trillion valuation, underscoring market confidence in the long-term prospects of AI infrastructure providers like TSMC.

TSMC CEO CC Wei reaffirmed in June that demand for AI chips continues to outpace supply, and reiterated the company’s forecast for mid-20% revenue growth in US dollar terms for full-year 2025.

The company is also pushing ahead with its $100 billion investment plan to expand global manufacturing capacity, including new facilities in Arizona, Japan, Germany, and Taiwan.

Wei’s comments aligned with broader expectations that generative AI and high-performance computing will remain major growth drivers for the company over the coming quarters.

TSMC is scheduled to report its full second-quarter earnings on July 17, which will include further details on profitability, capital expenditure plans, and guidance for the third quarter and full year.

Shares of TSMC are listed on both the Taiwan Stock Exchange (TWSE: 2330) and the New York Stock Exchange (NYSE: TSM).

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