Wall Street opened higher on Thursday, as investors mulled over fresh economic data, while upbeat results from Taiwan‘s TSMC that energised US chipmakers.
Early hours of trading
In the early hours of trading, the Dow Jones Industrial Average (.DJI), opens new tab rose 40.95 points, or 0.09%, to 44,295.73, the S&P 500 (.SPX), opens new tab gained 5.57 points, or 0.09%, to 6,269.27 and the Nasdaq Composite (.IXIC), opens new tab gained 34.26 points, or 0.17%, to 20,764.75.
TSMC reported 60% profit
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported a 60.7% jump in net profit for the second quarter, driven by strong global demand for artificial intelligence technologies.
The chip giant, which supplies industry leaders like Nvidia and Apple, posted a net profit of NT$398.3 billion (US$13.5 billion) for the April to June period, well above analysts’ expectations of NT$376.97 billion, according to Bloomberg. Quarterly revenue also rose 39% year-over-year, beating forecasts.
Chips remain vital to the rapidly growing field of generative AI, which has seen a surge in global adoption. TSMC CEO and Chairman C.C. Wei said during a Thursday briefing that demand for AI-related chips is expected to remain “robust.” The company also raised its full-year revenue outlook, helping to ease market concerns over a potential slowdown in the AI sector and pushing its U.S. stock futures higher.
Adding to the upbeat sentiment, Nvidia announced this week it will resume sales of its H20 AI chips to China, following a US decision to lift licensing restrictions that had previously halted exports. Wei welcomed the development, calling China a “big market” and saying the move was “very positive news” for both Nvidia and TSMC.
However, trade tensions remain a concern. The announcement came amid renewed threats from US President Donald Trump to impose new tariffs on key imports, including pharmaceutical products and semiconductors. Wei acknowledged last month that such measures could impact TSMC by increasing prices and dampening chip demand but emphasized that the company’s outlook remains strong.
Meanwhile, Taiwan continues negotiations with Washington to avert a proposed 32% tariff on its exports if a deal isn’t reached by August 1. In a bid to secure favorable terms, Taipei has pledged to boost investment in the U.S., increase purchases of American energy, and raise its defense spending.