Taiwan Semiconductor's Earnings Boost Asian Markets

Asian stock markets generally gained on Thursday after Taiwan Semiconductor's earnings lifted the chip-making colossus. The company's performance boosted investor confidence, contributing to a positive day for Asian stocks.

Asian stock markets generally gained on Thursday following Taiwan Semiconductor Manufacturing Company Limited's (TSMC) earnings report. The company's robust financial performance bolstered investor confidence, contributing to a positive day for Asian stocks.

TSMC reported quarterly net sales of $30.07 billion, up 38.6% year-over-year (Y/Y), surpassing analyst expectations of $30.04 billion [4]. The company's revenue from advanced technologies, such as 3-nm, 5-nm, and 7-nm, accounted for 74% of total wafer revenue, underscoring its leadership in high-end chip manufacturing. High-Performance Computing (HPC) and Smartphone platforms represented 60% and 27% of net revenue, respectively [4].

The company's strong performance was driven by insatiable global demand for its advanced processor technologies essential for artificial intelligence (AI) applications. TSMC's revenue from AI-related chips is projected to double in 2025, reflecting the rapidly expanding demand for AI technologies [2]. The company anticipates a compound annual growth rate (CAGR) of around mid-40% over the next five years for its AI-related chip segment [2].

TSMC's earnings report also highlighted its diversified revenue base, as it supplies chips to major tech companies such as Apple (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM), and Nvidia (NASDAQ:NVDA). While TSMC is exposed to cyclical changes in demand for smartphones and other devices, its diversified revenue base provides a more stable foundation for growth [2].

The company's outlook for 2025 revenue growth was also upgraded, with TSMC forecasting sales growth of about 30% in US dollar terms, up from mid-20% previously [3]. This growth is supported by resilient demand for high-end chips from tech firms, which are building datacenters essential to AI development. TSMC's strong performance has eased fears of an AI slowdown and reinforced the ongoing AI buildout [3].

In conclusion, TSMC's robust Q2 earnings report has significantly boosted investor confidence and contributed to a positive day for Asian stocks. The company's leadership in high-end chip manufacturing, diversified revenue base, and strong demand for AI-related chips position it well for continued growth in the coming years.

References:
[1] https://finance.yahoo.com/quote/TSM/
[2] https://www.investing.com/analysis/taiwan-semiconductor-earnings-can-ai-demand-justify-valuation-ahead-of-results-200663807
[3] https://www.bloomberg.com/news/articles/2025-07-17/tsmc-profit-surges-again-after-ai-drives-big-jump-in-sales
[4] https://finance.yahoo.com/news/nvidia-supplier-taiwan-semiconductor-roll-104315022.html