- Pre-market data shows stock close to year $235 peaks
- AI investment boom resilient April-June
- TSMC makes around two-thirds of world’s chips
Nvidia (NVDA:NASDAQ) becoming the first company in history to break through the $4 trillion market cap ceiling may be stealing the headlines but contract chip manufacturer TSMC (TSM:NYSE) is arguably a better measure of the global chips space, and things are ticking along very nicely.
The Taiwanese company makes something like two-thirds of the world’s chips for most of the leading designers and end users, so posting a 39% jump in Q2 sales, beating market expectations, is a great demonstration of the strong global demand for AI chips.
‘Trading at TSMC remains robust despite a mix of currency headwinds and tariff turmoil, showing just how powerful and resilient the AI theme is proving to be’, wrote AJ Bell investment analyst Dan Coatsworth in response this morning (10 July).
AI SPENDING SURGE CONTINUES
Companies continue to spend heavily in trying to get ahead in AI and this benefits TSMC as one of the industry’s crucial infrastructure suppliers. It is also powering the wider sector, evidenced by the PHLX Semiconductor Index’s, typically called the SOX, near-60% rally since April.
Pre-market data shows TSMC’s New York listed stock nudging $235 year highs when Wall Street opens later today.
TSMC will release full quarterly earnings, including net profit and forward guidance, on 17July 2025.
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Steven Frazer) and the editor (Martin Gamble) own shares in AJ Bell.
