TSM Stock Recent News

My high-conviction bullish view on Taiwan Semiconductor Manufacturing Company Limited aka TSMC has reaped great rewards. But after Q2 FY25 results, I am not as enthusiastic now. TSMC is seeing red-hot demand driven by high-performance computing needs, but due to capacity constraints, we can't expect commensurate growth. Usually, high demand and limited capacity leads to margin improvements via higher pricing. But not in this case as overseas fabs and a strong FX headwind may offset pricing gains.

EWT remains a buy due to strong momentum, attractive valuation, and a technical breakout above key resistance. The ETF's performance is heavily tied to Taiwan Semiconductor, which now makes up over 24% of the fund and benefits from the AI rally. EWT offers a high dividend yield, growing assets, and robust liquidity, but investors should note its elevated risk and sector concentration.

Taiwan Semiconductor Manufacturing Company Limited's fundamentals remain strong and valuation remains reasonable despite recent price rallies. But consensus earnings estimates seem overly optimistic given macro and geopolitical uncertainties reflected in ASML's recent earnings report. Implied volatility for TSM options is at a 52-week low.

Although the artificial intelligence (AI) arms race has been underway since the start of 2023, there is no shortage of stocks that remain excellent investments at present. We're far from reaping the benefits of the rise of AI across the entire economy, and significant infrastructure still needs to be built out.

TSMC delivered strong Q2 results with accelerating revenue growth, improved profitability, and raised full-year guidance, highlighting robust demand for AI and HPC chips. Expansion in the US, especially the Arizona fab ramp-up and advanced technology leadership with 2nm, secures TSMC's dominance and future growth potential. Despite tariff concerns, customer demand remains strong, and US expansion will help offset some long-term impacts, supporting continued profitability.

One of the longer-term booms in the stock market right now is right at the center of the technology sector, as the space is responsible for most of the returns now in the S&P 500 and Nasdaq-100 indexes. This feature is likely to continue into the future, considering how relatively early it is in the artificial intelligence race not only in the United States but worldwide.

Jinx! Last week, according to Bloomberg, the official market capitalization of Taiwan Semiconductor Manufacturing Company (TSM -1.84%) stock traded on the Taiwanese stock market reached $1 trillion.

Last week, Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), also known as TSMC, crossed an important psychological threshold for investors. The Taiwanese company surpassed a $1 trillion market capitalization, making it the first Asian company to do so since China's PetroChina oil and gas giant briefly achieved this milestone in 2007, notes GuruFocus.

Live Updates Live Coverage Has Ended More Details on NXP's Q2 4:52 pm by Eric Bleeker NXPI | NXP Semiconductors Q2’25 Earnings Highlights: Adj. EPS: $2.72 Revenue: $2.93B Adj. Gross Margin: 56.5%; DOWN -210 bps YoY Net Income: $690M; DOWN -17% YoY Q2’25 Outlook: Revenue: $3.05 billion to $3.25 billion Guidance reflects an emerging cyclical improvement in core end markets and company-specific growth drivers. Focus on solid profitability and earnings through portfolio strengthening and manufacturing strategy alignment. Q2 Segment Performance: Automotive Revenue: $1.73B ; FLAT YoY Industrial & IoT Revenue: $546M ; DOWN -11% YoY Mobile Revenue: $331M ; DOWN -4% YoY Comm. Infra. & Other Revenue: $320M ; DOWN -27% YoY Other Key Q2 Metrics: Adj. Operating Income: $935M; DOWN -13% YoY Adj. Operating Expenses: $505M ; DOWN -5% YoY R&D Expenses: $573M ; DOWN -4% YoY Free Cash Flow: $696M ; UP +21% YoY Effective Tax Rate: 18.3% (vs. N/A YoY) CEO Commentary: Kurt Sieve

TSM's long-term prospects remain bright, thanks to the ongoing AI boom and the insatiable appetite for high-tech 3nm/ 5nm chips, as exemplified by the raised FY2025 guidance. With the H20 export restriction to China already lifted, we are likely to see the foundry report excellent H1'26 financial numbers as well, once production is restarted. These reasons may also be why TSM and NVDA have charted new stock price peaks in recent days, albeit seemingly overbought by the time of writing.