Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) rose by 0.43%, reaching $165.18, following comments from former President Donald Trump about Taiwan’s role in defense contributions. Although TSMC initially saw a 2.4% drop after the remarks, the company reported a robust 60% year-over-year jump in Q1 net profits, hitting NT$361.56 billion. Revenues also surged by 41.6%, totaling NT$839.3 billion. TSMC maintained its optimistic growth forecast, projecting a nearly 25% increase in 2025, largely driven by rising demand for AI chips. However, the company cautioned that U.S. trade policies and tariffs could squeeze profit margins and affect future demand.

On the other hand, Intel Corp. (INTC) faced a 2.46% decline, closing at $19.84. Despite reporting Q1 revenues of $12.7 billion—slightly above forecasts—Intel widened its net loss to $821 million. The company is struggling to keep pace with TSMC in chip manufacturing, lagging behind in the PC chip market and missing opportunities in the lucrative AI data center space, currently dominated by Nvidia. Intel’s outlook for Q2 remains subdued, with expected revenues ranging between $11.2 billion and $12.4 billion, falling short of analyst predictions.

In an effort to turn the tide, Intel’s new CEO, Lip-Bu Tan, met with TSMC CEO, CC Wei, to explore collaboration opportunities between the two semiconductor giants. Tan highlighted the longstanding and strong partnership between the companies, focusing on mutual growth.

Amid these developments, Intel also announced strategic changes, including job cuts, reduced capital expenditures, and a streamlining of operations aimed at improving efficiency and decision-making speed. These measures come as the company faces ongoing challenges, exacerbated by trade policies and regulatory risks.

Investors are closely watching the evolving situation in the semiconductor industry, as both TSMC and Intel navigate a complex landscape shaped by geopolitical factors and shifting market dynamics.