TSMC profit surges 77% to record as AI demand booms

Taiwan Semiconductor Manufacturing Company ↘ 0.80% reported second-quarter net income of NT$706.56 billion, a 77.4% jump from the same period a year earlier and a new record for the world's largest contract chipmaker, the company announced on Thursday. The results, driven by surging demand for artificial intelligence infrastructure, marked TSMC's fifth consecutive quarter of record earnings.investor.tsmc+1

Beating Expectations

Consolidated revenue for the April-June quarter came in at NT$1,270.38 billion, or roughly $39.6 billion, representing a 36% increase from a year earlier. That figure hit the top end of the company's prior guidance range of $39.0 billion to $40.2 billion. Diluted earnings per share reached NT$27.25, or approximately $4.31 per ADR unit, well above the Wall Street consensus estimate of around $3.80 per share.reuters+3

Gross margin for the quarter was guided between 65.5% and 67.5%, extending a period of elevated profitability as TSMC benefits from pricing power on its most advanced manufacturing nodes. The quarter's net income also rose 23.4% sequentially from the first quarter, when TSMC had already posted record profit of NT$572.48 billion.tickeron+2

AI Demand Drives Growth

The results underscore how TSMC has become the central beneficiary of the global buildout of AI computing capacity. The company manufactures advanced chips for customers including Nvidia ↗ 2.30%, Apple ↘ 0.56%, and AMD Advanced Micro Devices, Inc. ↗ 1.45%, all of which are racing to deploy more powerful processors for AI training and inference workloads.

Ahead of the earnings report, Reuters noted that analysts expected a roughly 59% rise in net profit — meaning the actual 77% increase represented a substantial beat. TSMC's June revenue alone surged 67.9% year-over-year to NT$442.68 billion, a monthly record.cnbc+3

Market Reaction and Outlook

Despite the blowout results, TSMC shares traded lower in premarket activity, reflecting how elevated expectations had already been priced into the stock ahead of the report. The company's earnings conference call, scheduled for Thursday, is expected to provide guidance for the third quarter and commentary on capital spending plans as TSMC expands manufacturing capacity in Arizona and elsewhere.investor.tsmc+1

TSMC commands approximately 73% of the global pure-foundry market, according to Counterpoint Research data from the first quarter of 2026.cnbc