TSMC’s Record Earnings Fuel AI Chip Rally, Boosting Semiconductor Stocks
Taiwan Semiconductor Manufacturing Co. ignited a tech stock surge with record-breaking quarterly results, underscoring unrelenting demand for AI chips. The chipmaker's $16 billion profit and $33.1 billion revenue—both exceeding analyst expectations—sent its U.S.-listed shares up 5% while lifting equipment suppliers Applied Materials and KLA Corp. by 7% and 8% respectively.
Market reaction reveals investors' growing preference for concrete AI revenue over speculative bets. TSMC's planned 25% increase in equipment spending signals sustained infrastructure investment to meet AI processing demands. This divergence between proven performers and aspirational plays continues reshaping tech portfolios in 2025's volatile climate.