TSMC bursts the cloud of pessimism?
The news the market didn't expect – and probably needed most!
A period of concerns, threatening headlines about tariffs, slowing growth, declining demand – and suddenly, with one report – TSMC erases all doubts and sets a new bar for the chip industry.
The numbers leave no room for interpretation. Quarterly net income: 361.6 billion New Taiwan dollars (vs. market forecast of 354.6 billion – a huge gap for a giant of this scale). A 60% jump in net income compared to last year!
This is not just 'better than expected' – it's crushing pessimism.
AI revenue? To double by the end of 2025! Artificial intelligence is not just here – it's moving fast, and TSMC is at the helm.
And what about US tariffs?
Here comes the twist that drops the market's jaw: TSMC reports no change in customer behavior despite the new tariffs — no decline, no postponement, no hesitation.
Customers continue to order – and with intensity! Demand for advanced processors is not stopping, and the shift to AI only strengthens it.
Future forecasts – only up! Expected revenue in Q2: $28.4–29.2 billion (vs. market expectations of only $27.16 billion!) Expected gross margin: 57–59% (Q1 was 58.8%) Expected operating margin: 47–49% (Q1: 48.5%).
The message to investors: We are in momentum – and profit margins unseen in the sector.
Huge investments in the future – not fear, but attack. Second factory in Arizona completed – accelerating production lines. CAPEX expected for 2025: $38–42 billion – a massive investment in future demand.
TSMC shows that it is not just building on today's market – it is investing in the future of the AI world, and it knows exactly where it is going.
The CEO with a sharp and reassuring message: 'We are not in talks about technology transfer or joint ventures – we are focused on innovation, strength, and our strategy.' The stock reacted immediately – $TSM jumped about 5% in after-hours trading.
And the market? It's waking up with the understanding that TSMC could be the locomotive to pull the sector out of its slump.
Indices trading higher in after-hours trading:
SPY 0.9%+
QQQ 1.07%+
IWM 1.07%+
SOXX 1.8%+
MAGS 0.75%+
TSMC is not just breaking forecasts – it's erasing concerns.
In a world of tariffs, global uncertainty, and AI anxieties – TSMC comes and says:
'We are here, we are growing, and we are ready for the future.'