TSMC Posts Record $40B Quarter as AI Chips Hit 66% of Revenue

TSMC just reported the strongest quarter in its history: US$40.2 billion in Q2 revenue, up 36% year over year, with net income and earnings per share both up 77%. Gross margin reached 67.7%. The driver is unambiguous — high-performance computing, dominated by AI accelerators, now accounts for 66% of total revenue. TSMC also raised its full-year outlook, now guiding to more than 40% revenue growth in US-dollar terms (up from 30%) alongside higher capital spending. As the manufacturer behind nearly every serious AI chip, TSMC’s numbers are the clearest measure of how fast the AI hardware buildout is still accelerating.