A logo of Taiwan Semiconductor Manufacturing Company (TSMC) is seen during the opening ceremony of the TSMC Global RnD Center in Hsinchu on July 28, 2023. (Photo by Amber Wang/AFP)

Amber Wang | Afp | Getty Images

TSMCThe world's largest contract chipmaker reported strong second-quarter revenue growth on Wednesday, beating market expectations by a wide margin, thanks to rising demand for artificial intelligence (AI) applications.

Taiwan Semiconductor Manufacturing Co, whose customers include Apple and Nvidia, has benefited from the rise of AI, helping it weather the pandemic-induced demand slump and sending TSMC’s stock price to a record high.

According to Reuters calculations, revenue in the April-June period this year amounted to T$673.51 billion ($20.67 billion), compared with an LSEG SmartEstimate, based on 21 analysts, of T$654.27 billion.

That represents a 32% year-over-year increase, compared to $15.68 billion in the same period a year earlier.

It's not a direct comparison, as TSMC only provides monthly revenue data in Taiwan dollars. Its quarterly revenue numbers and quarterly earnings outlook are both in US dollars.

During its most recent earnings report in April, Taiwan Semiconductor Manufacturing Co. forecast second-quarter revenue of between $19.6 billion and $20.4 billion.

TSMC reported that revenue for June alone rose 33% year-on-year to T$207.87 billion.

The company did not provide further details in its summary of revenue.

TSMC, Asia's most valuable listed company with a market capitalization of $830 billion, did not provide details or guidance in its brief earnings statement.

The company is expected to report second-quarter results on July 18, along with guidance and plans for the current quarter and the rest of the year.

TSMC is expected to report a 30% increase in net profit in the second quarter year-on-year, according to an LSEG SmartEstimate.

Shares of TSMC listed in Taipei are trading at historic highs and closed 0.5% higher on Wednesday ahead of the release of sales figures, in line with the broader market.

Shares have risen 76% so far this year, compared with a 34% rise for the broader market.

TSMC's ADRs rose 4.8% to a record $192.79 on Monday, temporarily lifting the company's market value to $1 trillion.