GE and TSM: Top Stocks to Buy Ahead of Q2 Earnings

GE Aerospace and Taiwan Semiconductor are expected to report strong Q2 earnings, with GE's EPS expected to spike 19% to $1.43 and Taiwan Semiconductor's EPS expected to climb 60% to $2.37. Both companies have a Zacks Rank of #2 (Buy) and are expected to drive double-digit earnings growth in fiscal 2025 and FY26. Their recent performances, with GE stock up 50% YTD and Taiwan Semiconductor up 15%, make them attractive buys ahead of their earnings reports.

GE Aerospace (GE) and Taiwan Semiconductor (TSM) are set to report their Q2 2025 earnings on July 17, with analysts projecting robust financial performances for both companies. GE Aerospace's shares have surged 55% year-to-date (YTD), while Taiwan Semiconductor's stock has climbed 15% YTD, making them attractive investment opportunities ahead of their earnings reports.

GE Aerospace: A Strong Q1 and High Expectations for Q2

GE Aerospace delivered a strong Q1 2025, with a 12% increase in orders, an 11% rise in revenue, and a 38% profit increase. The company's commercial backlog of approximately $140 billion provides a solid foundation for future growth. The Commercial Engines & Services (CES) segment, in particular, is expected to continue its strong performance. Orders in the CES segment surged 31% year-over-year in Q1, while revenue climbed 17%, translating to a 35% increase in total operating profit [1].

Analysts are optimistic about GE Aerospace's earnings potential for Q2. They expect the company to post earnings of $1.43 per share, representing a 19.2% increase over the $1.20 reported in the same period last year. The company's "Strong Buy" consensus rating reflects the bullish sentiment among analysts [1].

Taiwan Semiconductor: AI Chip Demand Drives Strong Q2 Growth

Taiwan Semiconductor Manufacturing (TSM) is expected to report a sharp rise in earnings for Q2 2025, driven by booming demand for AI chips. The company is forecast to post earnings per share of $2.37, reflecting a year-over-year increase of about 60%. Revenue for fiscal 2025 is projected to reach nearly $114 billion, up from $87.9 billion in the prior year [2].

The company's strong performance in the first half of 2025, with a 40% year-over-year increase in revenue, was driven by robust AI-driven demand from chip designers like Nvidia Corp. (NVDA) and increasing outsourcing orders from Intel Corp. (INTC). Taiwan Semiconductor's second-quarter revenue reached $31.9 billion, marking a 38.6% year-over-year growth [3].

Investment Outlook

Both GE Aerospace and Taiwan Semiconductor have a Zacks Rank of #2 (Buy) and are expected to drive double-digit earnings growth in fiscal 2025 and FY26. Their recent performances make them attractive buys ahead of their earnings reports. However, investors should closely monitor the companies' earnings calls for updates on their growth strategies and potential risks.

References:

[1] https://www.ainvest.com/news/ge-aerospace-stock-soars-55-ytd-buy-q2-earnings-2507/
[2] https://finance.yahoo.com/news/tsmc-q2-earnings-preview-expect-164426580.html
[3] https://www.benzinga.com/markets/tech/25/07/46338109/tsmc-reports-solid-half-year-revenue-june-sees-monthly-decline