Taiwan Semiconductor Manufacturing Co. raised its outlook for 2025 revenue growth, delivering a big boost to confidence in the momentum of the global AI spending spree.

TSMC’s U.S.-listed shares rose 5.3% in overnight trading. SOXL up 2.4%; AMD up 1%; Nvidia up 0.7%.

The world’s biggest contract chipmaker on Thursday forecast sales growth of about 30% in US dollar terms this year, up from mid-20% previously. TSMC delivered that forecast after reporting a better-than-expected 61% jump in profit for the June quarter.

TSMC’s move underscores resilient demand for high-end artificial intelligence chips from the likes of Nvidia Corp. and Advanced Micro Devices Inc., which is outpacing its production capacity. Chief Executive Officer C.C. Wei affirmed in a shareholder meeting in June that AI orders continue to run hot.

A day before TSMC’s results, key chipmaking gear supplier ASML Holding NV triggered anxiety across markets by walking back its growth forecast for 2026. Geopolitics and the global economy are sources of “increasing uncertainty,” Chief Executive Officer Christophe Fouquet said. Its shares dropped more than 11%.

On Thursday, the Taiwanese company reported net income for the period of NT$398.3 billion ($13.5 billion), keeping intact a streak of beating estimates every quarter since 2021. The company previously posted a 39% surge in revenue.

The company’s revenue has grown roughly 40% over the first half of the year, even with a stronger Taiwanese dollar suppressing that figure. It’s pledged to spend another $100 billion ramping up manufacturing in Arizona, in addition to an expansion in Japan, Germany and back home.

A day before TSMC’s results, key chipmaking gear supplier ASML Holding NV triggered anxiety across markets by walking back its growth forecast for 2026. Geopolitics and the global economy are sources of “increasing uncertainty,” Chief Executive Officer Christophe Fouquet said. Its shares dropped more than 11%.