This week's AI winners and losers

Yahoo Finance's AI winners and losers provides a play snapshot of immoderate of the biggest stories impacting the artificial quality industry. From spot manufacturers and exemplary developers to bundle companies and politicians, we look astatine 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) announced blowout net connected Thursday and said it volition summation spending to grow its US footprint. Second 4th gross jumped 36% twelvemonth implicit year, portion nett income rocketed 77.4% higher.

TSMC produces semiconductors for the world's astir influential tech companies, including Apple (AAPL), AMD (AMD), Nvidia (NVDA), and Qualcomm (QCOM). And the AI roar has paid disconnected handsomely for the Taiwan-based manufacturer. Annual gross has accrued from $75.99 cardinal successful 2022 to $122.56 cardinal successful 2025.

According to CFO Wendell Huang, TMSC's Q2 results were supported by beardown demand, which helium expects to proceed into the existent 4th arsenic tech companies question arsenic galore AI chips arsenic they tin get.

Moonshot AI

Moonshot AI connected Friday revealed that its caller Kimi K3 AI exemplary has frontier-level capabilities. While it falls abbreviated successful wide show compared to state-of-the-art models similar Anthropic's (ANTH.PVT) Fable 5 and OpenAI's (OPAI.PVT) GPT-5.6 Sol, K3 surpasses them connected definite benchmark tests.

The announcement shows however rapidly China's AI companies are catching up with the astir well-funded organizations successful the US, and points to the large differences betwixt their approaches to AI dominance.

Like China's DeepSeek, Moonshot AI focuses connected releasing open-weight models, oregon models that users tin download for escaped and customize to their liking, portion Anthropic, OpenAI, and Google (GOOG, GOOGL) absorption connected proprietary models that users indispensable wage to access.

China's AI companies besides mostly undercut Anthropic, OpenAI, and Google connected usage pricing, making them much appealing to businesses that are looking to instrumentality vantage of AI but don't privation to ammunition retired for entree to Anthropic's Claude, OpenAI's GPT, oregon Google's Gemini.

This week's AI losers: IBM and the spot industry

IBM

Talk astir a unsmooth day. IBM (IBM) preannounced its Q2 net connected Tuesday, informing investors that its gross and net per stock fell good beneath analysts' expectations, arsenic the company's customers shifted their spending from its mainframe systems to AI servers and representation and retention chips.

Analysts had expected Big Blue to study adjusted net per stock (EPS) of $3.02 connected gross of $17.86 billion, but the institution says it came up short, posting adjusted EPS of $2.93 and gross of $17.2 billion.