Strong AI demand is driving a wave of high profitability across the semiconductor supply chain, with equipment and materials suppliers increasingly joining a “high-margin club.” Trailing only Nvidia’s 75% gross margin in the fiscal first quarter of 2027 (which ended in April 2026), TSMC posted a record quarterly gross margin of 67.72% in the second quarter, with its first-half margin also reaching 67%. Related suppliers have joined the club as well.