TSMC's second-quarter profit soars nearly 61%, beating estimates as AI chip demand stays strong

• TSMC's net revenue in the June quarter rose 38.65% from a year ago to NT$933.80 billion, beating estimates.
• The world's largest contract chip manufacturer has benefited from the megatrend towards AI as it gains from producing advanced processors for clients including Nvidia and Apple.

Taiwan Semiconductor Manufacturing Company on Thursday reported a near 61 year-on-year rise in second-quarter profit, beating estimates, as demand for artificial intelligence chips stays strong.

Here are TSMC's first-quarter results versus LSEG SmartEstimates:

• Revenue: 933.80 billion new Taiwan dollars ($31.7 billion), vs. NT$931.24 billion expected
• Net income: NT$398.27 billion, vs. NT$377.86 billion

Second-quarter net profit hit a record high, according to Reuters.

TSMC's net revenue in the June quarter rose 38.65% from a year ago to NT$933.80 billion, also beating estimates.

Advanced chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC's total wafer revenue in the quarter. In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency.

TSMC, the world's largest contract chip manufacturer, has benefited from the megatrend towards AI as it gains from producing advanced processors for clients including Nvidia and Apple.