TSMC announced its second quarter financial results on Thursday, with quarterly revenue increasing by 39% year-on-year, exceeding market expectations and further supporting market expectations for continued prosperity in artificial intelligence investment.

TSMC provides chip foundry services to Silicon Valley tech giants such as NVIDIA and Apple, and its performance is often seen as an important reference for judging the prosperity of the artificial intelligence industry.

According to the announcement, TSMC's sales in the second quarter climbed to NT $934 billion (approximately US $32 billion), higher than analysts' expectations of US $31.7 billion and also higher than the company's April forecast of US $28.4 billion to US $29.2 billion.

TSMC will release its complete Q2 earnings report on July 17th, including its outlook for this quarter and the full year.

The popularity of artificial intelligence has not yet subsided

This week, Nvidia became the first company in history to reach a market value of $4 trillion, highlighting investors' high optimism towards companies that play a key role in the construction of artificial intelligence infrastructure. TSMC's second quarter profit performance is expected to further boost this confidence.

TSMC CEO David Wei also promised in June this year that TSMC's sales will increase by about 20% by 2025. In addition, TSMC has pledged to invest an additional $100 billion in the United States to expand its manufacturing capabilities in Arizona and expand its production capacity in Japan, Germany, and other places.

Wall Street analysts have also adjusted TSMC's target stock price this month. Bernstein analysts adjusted TSMC's target stock price from $251 to $249 on Tuesday, indicating that the stock will continue to rise by 7.4%; Brad Lin, an analyst at Bank of America Securities, maintains a buy rating and sets the target price at $260, representing a 12% upside potential.

Shortly after TSMC's performance was announced, chip stocks in the European stock market opened with a general rise. Among them, chip equipment manufacturer ASML's stock price rose by 1%, BE Semiconductor's stock price rose by 2%, and VAT Group's stock price rose by 1.7%.

One risk to be wary of is whether the United States will impose tariffs on the chip industry. Wei Zhejia once pointed out that if tariffs push up costs and suppress demand, TSMC's performance may be affected. The recent surge in revenue for TSMC may also be related to customers seeking to ensure chip supply before tariffs are imposed in the United States.