TSMC’s Earnings Surge Sparks Chip Stock Rally, AI Growth Outlook Strong
Taiwan Semiconductor Manufacturing Co. soared to a record high after reporting a 34% jump in quarterly earnings, with revenue climbing 26% year-over-year to $33.73 billion. The chipmaker's bullish AI revenue forecast—projecting a high-50% CAGR through 2029—ignited gains across semiconductor stocks.
CEO C.C. Wei confirmed capacity expansions to meet demand, calling AI adoption a "multiyear megatrend." Nvidia and AMD rose 2% and 5% respectively, though Intel lagged marginally. TSMC's performance temporarily eased concerns about semiconductor demand cyclicality.