TSMC Surpasses $1 Trillion Market Cap as AI Chip Boom Powers Growth

TSMC hit $1 trillion in market capitalization on the Taiwan Stock Exchange for the first time, driven by rising global demand for AI chips, Yahoo Finance reported. The stock surge marks a milestone not just for Taiwan Semiconductor Manufacturing Co. (TSMC), but also for Asia’s broader semiconductor industry.

TSMC surpassed $1 trillion market cap after its shares jumped nearly 50% on Friday from April. Goldman Sachs Group Inc. analysts, including Bruce Lu, wrote after TSMC’s quarterly earnings, “We think that TSMC’s tone towards advanced node demand is even more positive with AI customers showing no signs of demand slowdown. We expect to see a higher magnitude of price hike in 2026.”

Q2 Profit Soars 61%

TSMC’s second-quarter earnings confirmed the bullish sentiment. TSMC’s Q2 2025 profit jumped 61% year-on-year, supported by strong sales of chips used in AI servers, high-performance computing, and premium smartphones. TSMC expects its third-quarter revenue to be between $31.8 billion and $33.0 billion. This would mark a 38% increase from the same period last year and about 8% growth compared to the previous quarter, based on the midpoint of the forecast range.

The rise in TSMC’s Q2 profit is linked to its dominance as the world’s largest contract chipmaker. Its clients include Nvidia, Apple, and AMD. TSMC CEO C.C. Wei said during the earnings call that the company expects its total revenue for 2025 to grow by about 30% in U.S. dollar terms. This outlook is driven by rising demand for artificial intelligence and the company’s cutting-edge chip technologies.

Stock Momentum and Market Confidence

Following its earnings report, TSMC’s stock value jumped to a record high, pushing its market cap past the $1 trillion mark in local currency. This positions the company alongside global tech giants like Apple, Microsoft, and Nvidia in the trillion-dollar club.

Investors are betting on the company’s technological edge and supply chain resilience. Despite broader market volatility and geopolitical concerns, TSMC continues to attract long-term institutional interest.

Outlook for the Rest of 2025

In its guidance, TSMC said it expects Q3 revenue to range between $31.8 billion and $33 billion, citing ongoing momentum from AI chips and premium smartphone launches. Capital expenditure for 2025 is projected at $28 billion, with a large chunk allocated to expanding AI chip capacity.

So far, TSMC’s Q2 2025 earnings have strengthened investor confidence in the company’s outlook. Analysts say the company is on track to benefit from AI, 5G, and automotive chip trends over the next few years.

With TSMC surpassing $1 trillion market cap, Taiwan’s most valuable firm now plays a central role in the future of global technology. Its dominance in semiconductor manufacturing continues to grow, reinforced by rising demand and unmatched technical capabilities.