TSMC's market capitalization reached about $2.1 trillion by Friday's close, following a 7.6% share jump on July 30. The company's second-quarter revenue rose 34% year-over-year to $40.2 billion, with net income growing 77% year-over-year to a record. Management expects third-quarter revenue of $44.6 billion to $45.8 billion, representing another 12% sequential increase at the midpoint. Despite these strong figures, TSMC trades at roughly 20 times forward earnings estimates, comparable to an average large company and its customer Nvidia, but significantly below Advanced Micro Devices (AMD) which trades at about 54 times forward estimates. Analysts attribute the valuation discount to its cyclical manufacturing nature, geopolitical risks associated with its Taiwan production, and heavy spending on new capacity.