TSMC's second-quarter profit exceeds expectations, and the AI chip boom continues

Here's how TSMC's second quarter results surpassed the London Stock Exchange's consensus forecast:

Sales: 673.5 billion10 million Taiwan dollars (20.8 billion 20 million US dollars) vs. expected 657.5 billion80 million Taiwan dollars

TSMC predicts sales for the 3rd quarter to be 22.4 billion to 23.2 billion US dollars. Sales for the same period last year were 17.3 billion US dollars.

The company reduced the scope of this year's capital budget from 28 billion to 32 billion dollars to 30 billion to 32 billion dollars. Of these, 70 to 80 percent is spent on advanced technology.

TSMC's Taiwanese listed stock has risen nearly 70% so far this year due to a rapid increase in demand for advanced chips used in artificial intelligence applications.

Demand for generative AI in the cloud and edge is rapidly increasing,” Brady Wang, associate director of Counterpoint Research, said before Friday's financial results. TSMC's N3 process has good yield, and production lines are well managed. The market is well-funded, and regional political factors are also supporting the expansion of demand for advanced processes.”