TSMC posted a record quarterly profit on Thursday and raised its revenue outlook as booming demand for artificial intelligence chips continued to fuel growth at the world’s largest contract chipmaker.Taiwan-based TSMC reported earnings of $4.31 per share for the April-June quarter, beating analysts’ expectations.Revenue came in at $40.2 billion (€36.8bn), above analysts’ estimates of $39.63 billion (€34.6bn).In local currency, net profit reached a record NT$706.6bn (€19.1bn), up 77% from a year earlier, while revenue climbed 36% to NT$1.27 trillion (€36.8bn), as appetite for the advanced chips TSMC makes for customers such as Nvidia and Apple showed no sign of cooling.Given that it manufactures semiconductors for almost every major chip designer, the Hsinchu-based firm’s results are closely read as a gauge of the wider sector and of broader AI demand itself, just as investors fret over a possible bubble.CEO Che-Chia Wei described global AI-related demand as “extremely robust” and said he expected it to remain very strong until around 2029 or 2030. On that basis, TSMC now forecasts 2026 revenue growth of slightly above 40% year on year, up from its previous guidance of more than 30%.Thursday’s figures confirmed what monthly sales data had already suggested.As reported on Monday, June revenue jumped 67.9% year on year, and first-half sales rose 35.6% from the same period in 2025, slightly ahead of analysts’ consensus forecasts for the quarter.TSMC shares rose about 1% after the earnings release but later pared those gains as a sell-off in AI-related shares weighed on benchmarks across Asia during Thursday’s session.Expanding US manufacturingAlongside the results, TSMC said it would spend an additional $100 billion (€87.4bn) to expand its manufacturing capacity in the US, on top of the $165 billion (€144bn) already committed to building six fabrication plants in Arizona.The move would bring the company’s total US investment pledges to around $265 billion (€231bn).The fresh funds are expected to fund four further Arizona plants dedicated to the most advanced chips, those of 2 nanometres and below, and are intended to “support the strong multi-year demand” from the company’s leading American customers, CEO Che-Chia Wei said during the firm’s earnings conference.TSMC also said it would spend more this year than previously planned, increasing its capital expenditure budget to between $60 billion (€52.4bn) and $64 billion (€55.9bn), up from an earlier range of $52 billion (€45.4bn) to $56 billion (€48.9bn).The announcement follows a trade agreement struck earlier this year between the Trump administration and Taiwan, under which Taiwanese companies committed to invest at least $250 billion (€218bn) in the US technology sector in return for lower tariffs.