This week's AI winners and losers

TSMC reported blowout Q2 earnings with revenue up 36% year over year and net income soaring 77.4%, driven by surging AI chip demand, while China's Moonshot AI unveiled its Kimi K3 model with frontier-level capabilities. IBM preannounced disappointing Q2 results, with revenue and earnings falling below analyst estimates as customers shifted spending from mainframes to AI infrastructure.

Yahoo Finance's AI winners and losers provides a weekly snapshot of some of the biggest stories impacting the artificial intelligence industry. From chip manufacturers and model developers to software companies and politicians, we look at who has benefited from AI and who has stumbled. This week's AI winners: TSMC and China's Moonshot AI TSMC Taiwan Semiconductor Manufacturing Co. TSM https://finance.yahoo.com/quote/TSM/ announced blowout earnings on Thursday https://finance.yahoo.com/markets/article/tsmc-raises-capex-and-revenue-forecast-highlighting-growing-ai-chip-demand-113101950.html and said it will increase spending to expand its US footprint. Second quarter revenue jumped 36% year over year, while net income rocketed 77.4% higher. TSMC produces semiconductors for the world's most influential tech companies, including Apple AAPL https://finance.yahoo.com/quote/AAPL/ , AMD AMD https://finance.yahoo.com/quote/AMD/ , Nvidia NVDA https://finance.yahoo.com/quote/NVDA/ , and Qualcomm QCOM https://finance.yahoo.com/quote/QCOM/ . And the AI boom has paid off handsomely for the Taiwan-based manufacturer. Annual revenue has increased from $75.99 billion in 2022 to $122.56 billion in 2025. According to CFO Wendell Huang, TMSC's Q2 results were supported by strong demand, which he expects to continue into the current quarter as tech companies seek as many AI chips as they can get. Moonshot AI Moonshot AI on Friday revealed that its new Kimi K3 AI model has frontier-level capabilities. While it falls short in overall performance compared to state-of-the-art models like Anthropic's ANTH.PVT https://finance.yahoo.com/quote/ANTH.PVT/ Fable 5 and OpenAI's OPAI.PVT https://finance.yahoo.com/quote/OPAI.PVT/ GPT-5.6 Sol, K3 surpasses them on certain benchmark tests. The announcement shows how quickly China's AI companies are catching up with the most well-funded organizations in the US, and points to the major differences between their approaches to AI dominance. Like China's DeepSeek, Moonshot AI focuses on releasing open-weight models, or models that users can download for free and customize to their liking, while Anthropic, OpenAI, and Google GOOG https://finance.yahoo.com/quote/GOOG/ , GOOGL https://finance.yahoo.com/quote/GOOGL/ focus on proprietary models that users must pay to access. China's AI companies also generally undercut Anthropic, OpenAI, and Google on usage pricing, making them more appealing to businesses that are looking to take advantage of AI but don't want to shell out for access to Anthropic's Claude, OpenAI's GPT, or Google's Gemini. This week's AI losers: IBM and the chip industry IBM Talk about a rough day. IBM IBM https://finance.yahoo.com/quote/IBM/ preannounced its Q2 earnings on Tuesday, warning investors that its revenue and earnings per share fell well below analysts' expectations, as the company's customers shifted their spending from its mainframe systems to AI servers and memory and storage chips. Analysts had expected Big Blue to report adjusted earnings per share EPS of $3.02 on revenue of $17.86 billion, but the company says it came up short, posting adjusted EPS of $2.93 and revenue of $17.2 billion.