Taiwan Semiconductor Manufacturing posted soaring second-quarter results—revenue up 36% and net income up 77%—and signaled heavier U.S. investment as the AI chip boom keeps foundries running hot. In China, Moonshot AI said its Kimi K3 model delivers frontier-level performance, besting top U.S. systems on select benchmarks and underscoring Beijing’s push on lower-cost, open-weight alternatives. The week’s losers included IBM, which preannounced a miss on revenue and earnings as enterprise spending rotated from mainframes to AI servers and memory and storage, highlighting a bumpy near-term transition even as the company courts AI demand. The crosscurrents reflect an industry stretching to meet AI compute needs while investors parse whether surging chip-cycle profits can outpace pricing pressure from fast-moving Chinese developers and shifting data-center budgets.
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