S&P Hits New High with Strong Blue-Chip Earnings

The S&P 500 index reached a new high as investors reacted positively to upbeat earnings reports from blue-chip companies. TSMC, the world's largest contract chip maker, reported a record profit for the quarter, while shares in EV maker Lucid surged after it announced a collaboration with Uber on its robotaxi program.

The S&P 500 index reached a new high on July 2, 2025, as investors reacted positively to upbeat earnings reports from several blue-chip companies. The index, which includes the 500 largest publicly traded companies in the United States, has been on a steady upward trajectory, driven by strong financial results from key players in various sectors.

One of the standout performers was Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chip maker. TSMC reported a record profit for the second quarter of 2025, driven by robust demand for artificial intelligence (AI) chips. The company's net revenue for the quarter rose by 38.65% year-over-year (YoY) to NT$933.80 billion, or approximately $31.7 billion [1]. This significant growth was primarily fueled by strong demand for advanced AI processors, with advanced chips (7nm and below) accounting for 74% of TSMC's total wafer revenue [1].

TSMC's shares were up nearly 6% at 2:25 a.m. ET on trading platform Robinhood, reflecting investor optimism about the company's performance [1]. The company's strong financials were driven by the megatrend towards AI, with leading clients such as Nvidia and Apple benefiting from TSMC's advanced manufacturing capabilities [1]. However, TSMC faces potential headwinds, including trade policies and tariffs imposed by the U.S. President Donald Trump, which could impact the company's operations and revenue growth [2]. Despite these challenges, TSMC remains well-positioned to benefit from the AI revolution.

Another significant development was the collaboration between electric vehicle (EV) maker Lucid Motors and ride-hailing giant Uber. Uber announced Thursday that it will acquire $300 million worth of shares in Lucid Motors as part of an ambitious plan to build its own fleet of robotaxis. The emerging autonomous taxi market is gaining momentum, with Google subsidiary Waymo currently holding the strongest position in the United States. Tesla launched its first robotaxi service in Austin, Texas in late June, though with limited scope and a very small fleet [3]. Uber has already partnered with Waymo and now offers driverless rides in Atlanta, Georgia and Austin. However, Thursday's announcement represents a much larger commitment, with Uber taking an equity stake in Lucid.

Under the agreement, Uber commits to purchasing a minimum of 20,000 autonomous vehicles based on Lucid's Gravity SUV model over six years following the start of production, scheduled for the second half of 2026. These vehicles will be owned by Uber and exclusively available through its platform. The news sent Lucid's stock soaring nearly 30% on Wall Street [3].

The S&P 500's new high reflects the overall positive sentiment among investors, driven by strong earnings reports and strategic collaborations in key sectors. As the market continues to evolve, investors should remain vigilant and focus on the long-term trends and fundamentals that drive these companies' performance.

References:
[1] https://www.cnbc.com/2025/07/17/tsmcs-second-quarter-profit-soars-nearly-61percent-as-ai-chip-demand-stays-strong-.html
[2] https://www.ainvest.com/news/tsmc-q2-profit-surges-61-strong-ai-chip-demand-2507/
[3] https://www.guideautoweb.com/en/articles/79329/uber-invests-300-millions-in-lucid-in-robotaxi-push/