Taiwan Semiconductor Manufacturing's quarterly profit exceeded expectations, underscoring the strength of global demand for artificial intelligence computing.

As a primary chip manufacturer for companies like Nvidia and Apple, the firm reported a second-quarter net profit that climbed to NT$706.6 billion (US$22 billion), surpassing the average estimate of NT$623.7 billion. The company's revenue for the quarter rose by 36% to NT$1.27 trillion.

This consistent growth highlights TSMC's central role in producing the world's most advanced chips needed for data centers and smartphones. As Asia's most valuable listed company, TSMC is seen as a bellwether for massive AI infrastructure investments by giants such as Meta Platforms, whose spending this year could exceed $725 billion. However, investors now face concerns over high stock valuations and whether Meta and its rivals might be building more computing capacity than will be needed in the future.

Nevertheless, many industry leaders, including TSMC, have pushed back against such concerns. TSMC's CEO, C.C. Wei, stated in June that the company could not meet enterprise demand driven by its American customers, even as new U.S. production capacity comes online.