Earnings report exceeds expectations! Taiwan Semiconductor raises 2025 sales guidance, stock price surges 4%!
Taiwan Semiconductor (TSM) announced its Q2 2025 financial report, with revenue reaching USD 30.07 billion, a year-on-year increase of 44%, and earnings per ADR of USD 2.47, a year-on-year increase of 68%. The company raised its sales guidance for 2025, expecting sales to grow by approximately 30% this year. Following the release of the financial report, Taiwan Semiconductor's stock price rose by more than 4%, currently reported at USD 248, with a cumulative increase of 21% year-to-date
Investment Insights - The demand for high-end AI chips from companies like NVIDIA and AMD remains strong, boosting TSMC's revenue and profits.
On July 17, TSMC (TSM) announced its performance for the second quarter of 2025.
The financial report shows that the company's revenue for the second quarter was USD 30.07 billion, a year-on-year increase of 44%. Earnings per ADR were USD 2.47, a year-on-year increase of 68% (Note: 1 ADR equals 5 common shares).
The operating net profit margin was 49.6%, exceeding the upper limit of guidance. The operating gross profit margin was 58.6%, at the upper end of the guidance range. Overall, TSMC's profits exceeded market expectations.
[Image Source: TSMC Corporate Presentation; TSMC Financial Report Data]
The reason for the profits exceeding expectations is mainly due to the increased proportion of advanced processes. Among them, the shipment volume of 3nm and 5nm processes accounted for 60% of total wafer revenue.
TSMC estimates that third-quarter revenue will be between $318 million and $330 million, exceeding market expectations.
The company stated that the demand for artificial intelligence (AI) is becoming increasingly strong. It has raised its revenue growth outlook for 2025, expecting sales to increase by about 30% this year in dollar terms, higher than the previously forecasted growth rate of around 25%.
[Source: TSMC Official Website; TSMC Performance Outlook]
After the financial report was released, TSMC (TSM) rose more than 4% in after-hours trading, currently reported at $248. Since the beginning of 2025, TSMC's stock price has accumulated a rise of 21%
