TSMC, the leading chipmaker for AI applications, is projected to announce strong quarterly earnings despite a recent 4% drop in Taipei shares following remarks from Donald Trump regarding Taiwan. Trump’s comments suggested that Taiwan should pay the U.S. for its role in the chip business, causing concerns among investors. However, experts believe that while there may be political repercussions, the market fundamentals for AI investment remain strong.
The surge in demand for AI technology has greatly benefitted TSMC, with the company expected to report a 30% increase in second-quarter profit. Customers like Apple and Nvidia continue to drive growth, leading to record-high stock values before the recent decline. Despite market fluctuations, major companies remain optimistic about AI, reflecting ongoing investments in the sector.
TSMC’s upcoming earnings call will offer insights into its future outlook, including capital expenditure and expansion plans. The company’s strategic investments in new factories, including those in the U.S., aim to meet growing demand for advanced technologies. As the tech industry enters its peak season, TSMC’s position as a key player in the global chip market remains firm, with limited competition from rivals like Intel and Samsung.