Chip-related stocks are among the top gainers in the Hong Kong market today. At the time of writing, shares of Nexchip (02249.HK) are up 4.39% at HK$30.46, while Hua Hong Grace (01347.HK) have risen 3.97% to HK$144.3. Shanghai Fudan (01385.HK) shares have gained 3.16%, trading at HK$26.08, and SMIC (00981.HK) are up 2.88% at HK$69.55.
The positive sentiment follows the recent second-quarter results from Taiwan Semiconductor Manufacturing (TSMC), which reported record-breaking profits for a fifth consecutive quarter, reinforcing its positive outlook on the long-term growth trajectory of the AI industry. The chipmaker's net profit for the period reached NT$706.56 billion (approximately $21.98 billion), a 77% year-on-year increase, surpassing market expectations of NT$624 billion.
Second-quarter revenue came in at NT$12.70 trillion, marking a 36% year-on-year rise and aligning with the company's prior guidance. TSMC expressed a highly optimistic view of its business prospects for the coming years, anticipating robust demand to persist through 2030, with overall growth trends expected to remain solid.
The company has raised its revenue growth forecast, now expecting a growth rate slightly above 40% in U.S. dollar terms for 2026, up from a previous projection of "over 30%." In response to surging demand for AI chips, TSMC plans to further expand investments in advanced process technologies and advanced packaging. The company anticipates that its capital expenditures over the next three years will be significantly higher than those of the past three years.
Comments