🔥 TSMC is hot

What’s going on here?

TSMC just broke revenue records yet again, cheering up investors who’d been worried about a slowdown in the AI boom.

What does this mean?

Taiwan’s TSMC – the world’s most advanced chipmaker – pulled in nearly 39% more revenue in its latest quarter than the year before, beating expectations and then some. You can think of TSMC as the chip industry’s most important behind-the-scenes player. It doesn’t design chips, it builds them – for everyone from Apple to Nvidia and the biggest names in AI. And those companies are spending big on the little guys: Microsoft, Meta, Amazon, and Alphabet are planning to drop $350 billion on semiconductors this year. A lot of those orders will be directed at Nvidia for its powerful AI chip designs. But even then, it’s TSMC that actually fabricates the things, pocketing cash for each and every one. Whether a semiconductor is designed in Redmond, Menlo Park, or Shenzhen, chances are it’s made in Taiwan.

Why should I care?

For markets: Follow the machinery.

When the likes of TSMC is running at full bore, it shows that AI infrastructure spending is serious. Look more broadly, and Nvidia’s shares prove the point: they’ve rocketed nearly 1,000% since 2023, and they briefly crossed the $4 trillion mark this week. The firm now makes up 7.5% of the entire S&P 500. That’s hefty – and if it stumbles, the fallout could be equally big.

Zooming out: Behind every great company….

Nvidia’s chip designs are out in front now, but its rivals are coming up behind. Microsoft has Maia, Amazon’s scaling Trainium, Meta’s got its in-house silicon, and China’s Huawei and Baidu are going self-reliant. Still, they’ll all need TSMC. As Nvidia’s valuations stretch higher, investors might do well to consider buying the quieter AI giants – the ones making money no matter whose name is on the box.

What’s going on here?

Revolut is shifting into high gear, speeding toward a $1 billion funding round that would value the fintech firm at a spiffy $65 billion.

What does this mean?

That valuation would be a 44% jump from last year’s one, which already made Revolut Europe’s most valuable fintech. And the increase isn’t just down to investor hype. The firm’s pre-tax profit more than doubled last year, hitting $1.4 billion thanks to booming crypto trading and surging subscription sales. This fresh $1 billion cash raise would help Revolut’s transition from buzzy startup to full-blown financial force. Still, there’s work to do. Revolut has a lot of users – 60 million, in fact – but most don’t treat it as their main bank. And while the firm finally bagged a UK banking license last year, it’s still waiting on the green light to offer credit. Until then, Revolut’s a global fintech with plenty of hustle but still less muscle than a traditional bank.

Why should I care?

For markets: The fintech revolution still needs old-school trust.

Revolut’s user numbers make for good headlines, but real banking power comes from getting folks to do two things: deposit their salaries and borrow money. And that’s where most digital banks hit a wall. So, impressive as Revolut’s global reach may be, its long-term success will still hinge on the traditional, less glamorous stuff. That’s securing regulatory licenses, maintaining local compliance, and convincing people to ditch their old banks and go fully digital.

The bigger picture: Bitcoin’s boom is good for fintechs.

Bitcoin’s recent break above $112,000 signals two things. First, that investors still have an appetite for riskier assets – regardless of sticky inflation, rising tariffs, and geopolitical tensions. And second, that crypto is becoming increasingly hard to sideline. For Revolut, it’s a win: the fintech offers crypto alongside regular banking services, see, and those higher prices will push its trading volumes up. Plus, the rally validates its early push to embed crypto into everyday finance.