AI Chip Boom Delivers Record TSMC Profit Even as Asian Tech Stocks Wobble
Chipmaker's earnings surge contrasts with a selloff that hit SK Hynix, while Alibaba and Baidu rallied on an Apple AI deal
Taiwan Semiconductor Manufacturing Co. reported second-quarter profit that jumped more than 77%, beating analyst estimates and underscoring the extraordinary demand for high-end chips powering the artificial intelligence boom, according to CNBC. The results followed strong June revenue figures the company released earlier in the week.
Yet the AI-driven rally in chip stocks showed signs of strain elsewhere in Asia. Shares of South Korea's SK Hynix plunged 10% on Thursday as a selloff among U.S. chipmakers spilled into the region, part of a broader tech rout across Asian markets, CNBC reported.
The mixed signals extended to China, where shares of Alibaba and Baidu jumped in Hong Kong trading after news of an AI partnership with Apple, CNBC reported, as technological rivalry between Washington and Beijing intensifies in the race for AI dominance.
Amid the volatility, CNBC's Jim Cramer said he wants to see "cold hard" proof that artificial intelligence investments are actually paying off, telling viewers he is looking for companies to demonstrate measurable financial returns rather than simply riding investor enthusiasm.
The divergent moves illustrate how the AI investment boom is simultaneously lifting some companies to record earnings while leaving others exposed to sharp swings, as investors try to gauge which firms will ultimately convert AI spending into sustained profit.
— Compiled from reporting by CNBC.