MW Taiwan Semi profit booms by 61% as Nvidia buoys demand

By Steve Goldstein

Taiwan Semiconductor Manufacturing Co., the contract manufacturer for companies including Nvidia and Apple, on Thursday said its profit surged in the second quarter due to artificial-intelligence demand.

Its profit jumped 61% to NT$398.3 billion, which came in ahead of the NT$378.1 billion consensus, according to Visible Alpha.

The Hsinchu, Taiwan company last week had reported that sales during the quarter jumped 39% to NT$933.2 billion. High-performance computing represented 60% of revenue.

It guided for third-quarter sales of between $31.8 billion and $33 billion, a sequential improvement from the second quarter's $30.07 billion, but a decline in operating margin to a range of 45.5%-47.5% from 49.6% in the second quarter. Using a projected currency rate of one dollar equaling 32.5 New Taiwan dollars, the midpoint implies NT$1.05 trillion in sales, versus analyst expectations of NT$927.3 billion.

Taiwan Semi shares (TSM) (TW:2330) rose 5% on Robinhood's premarket platform. Its U.S.-listed shares have climbed 20% this year.

On a conference call, CEO C.C. Wei said it "certainly" was good news that Nvidia (NVDA) is getting permission to sell the H20 microchip in China again, but that he hasn't been formally informed and that it was too early to incorporate that into guidance.

-Steve Goldstein

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July 17, 2025 03:05 ET (07:05 GMT)

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