Taiwan Semiconductor Rides AI Wave to Record Revenues, Secures Tariff Exemption

What's Going On With Taiwan Semiconductor Stock Friday? - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co TSM on Friday reported consolidated net revenue of approximately 323.17 billion New Taiwanese dollars (roughly $10.66 billion) for July 2025, up 22.5% quarter-over-quarter, backed by the artificial intelligence frenzy. The contract chipmaker's topline rose by 25.8% year-over-year (Y/Y). The company's revenue for January through July 2025 reached 2.1 trillion New Taiwanese dollars (roughly $69.3 billion), rising 37.6% Y/Y. Taiwan Semiconductor stock gained 23% year-to-date. Also Read: Taiwan Semiconductor Stock Slips As Samsung Scores $16.5 Billion Tesla Chip Deal On August 7, Taiwan Semiconductor jumped ~5% in overnight trade after Taiwanese officials confirmed the chipmaker is exempt from President Donald Trump's proposed 100% tariffs on semiconductor chips. National Development Council chief Liu Chin-ching told parliament that Taiwan Semiconductor qualifies for the exemption because it operates U.S. factories, including fabrication plants in Arizona, under its $165 billion investment commitment. The move eases investor concerns as Taiwan Semiconductor supplies chips to major U.S. clients like Apple AAPL and Nvidia NVDA. CEO C.C. Wei has said U.S. tariffs pose "indirect headwinds" but noted that demand for AI chips "consistently outpaces supply," keeping the company well-positioned despite trade tensions. On July 17, the chipmaker gained over 4% after it reported second-quarter results that exceeded analyst expectations, fueled by strong global demand for its advanced processors used in artificial intelligence. Taiwan Semiconductor reported net sales of $30.07 billion, up 38.6% Y/Y and 11.3% Q/Q, beating its guidance range and topping the $30.04 billion consensus. Net income rose 60.7% Y/Yto $2.47 per share, above the $2.37 estimate. Gross margin expanded to 58.6%, and operating margin climbed to 49.6%, driven by high demand for 3-nm and 5-nm technologies, which accounted for 60% of total revenue. The company guided third-quarter revenue between $31.8 billion and $33.0 billion, with gross margin projected at 55.5% to 57.5% and operating margin at 45.5% to 47.5%, supported by continued strength in leading-edge process technologies. Key revenue drivers included High-Performance Computing (60% of revenue) and Smartphones (27%), with North America contributing 75% of sales. Management also cited positive momentum from the U.S. government easing certain chip export restrictions to China, enabling Nvidia to resume H20 AI chip sales. Chairman C.C. Wei highlighted a $100 billion expansion of U.S. manufacturing investment, adding to a prior $65 billion commitment for three Arizona fabs. However, he cautioned that potential U.S. tariffs on Taiwan could temper fourth-quarter momentum despite no immediate change in customer orders. On August 7, Wedbush analyst Daniel Ives called Apple's new $100 billion U.S. investment a strategic move to ease Trump administration tensions and secure long-term growth under tariff pressure. Ives linked the plan to Apple's partnerships with Taiwan Semiconductor and other chipmakers, projecting over 19 billion U.S.-made chips in 2025. He said the initiative strengthens domestic supply chains and boosts Apple's standing with the White House, even as large-scale U.S. iPhone production remains unlikely. Price Action: TSM stock is trading higher by 0.13% to $242.93 premarket at last check on Friday. Read Next: Airbnb Impresses With Earnings, Yet Wall Street Flags Travel Headwinds And Tougher Comps Photo by Sundry Photography on Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$243.180.23%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum83.46Growth29.21QualityN/AValue49.10Price TrendShortMediumLongOverviewAAPLApple Inc$220.920.40%NVDANVIDIA Corp$181.920.64%Market News and Data brought to you by Benzinga APIs

What's Going On With Taiwan Semiconductor Stock Wednesday? - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co TSM will shut down its 6-inch wafer manufacturing business over the next two years and consolidate its 8-inch wafer production capacity to boost efficiency, the company said Tuesday. Taiwan Semiconductor operates one 6-inch wafer fab and four 8-inch wafer fabs in Taiwan for mature-node chip production. At the same time, advanced-node manufacturing for clients like Apple AAPL and Nvidia NVDA takes place in 12-inch fabs. The Taiwanese contract chipmaker told Reuters it made the decision after a thorough evaluation of market conditions and aligned it with its long-term business strategy. It said the move would not affect previously announced financial targets. Aldo Read: Booming Taiwan Chip Industry Faces Critical Worker Shortage In July, the chipmaker forecast a roughly 30% increase in 2025 revenue in U.S. dollar terms. Taiwan Semiconductor stock gained 24% year-to-date, topping the PHLX Semiconductor Index's over 17% returns as U.S. Big Tech giants like Microsoft MSFT, Apple, and Meta Platforms META keep investing in their AI ambitions. Last week, Taiwan Semiconductor reported consolidated net revenue of about 323.17 billion New Taiwanese dollars (roughly $10.66 billion) for July 2025, rising 22.5% quarter-over-quarter on strong artificial intelligence demand. Revenue climbed 25.8% year-over-year, and January-July 2025 sales reached 2.1 trillion New Taiwanese dollars (about $69.3 billion), up 37.6% year-over-year. On August 7, the stock jumped about 5% in overnight trade after Taiwanese officials confirmed the chipmaker's exemption from President Donald Trump's proposed 100% tariffs on semiconductor chips. National Development Council chief Liu Chin-ching told parliament that the chipmaker qualifies because it operates U.S. factories, including Arizona fabs, under its $165 billion investment commitment. The exemption eased investor concerns as Taiwan Semiconductor supplies chips to major U.S. clients like Apple and Nvidia. CEO C.C. Wei acknowledged U.S. tariffs as "indirect headwinds" but said AI chip demand "consistently outpaces supply," keeping the company well-positioned despite trade tensions. Price Action: TSM stock is trading higher by 0.50% to $245.52 premarket at last check Wednesday. Read Next: Beijing Asks Alibaba, ByteDance Why They Need Nvidia H20 Chips Instead Of Local Alternatives Photo by Jack Hong via Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$245.880.65%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum83.87Growth29.88QualityN/AValue48.16Price TrendShortMediumLongOverviewAAPLApple Inc$229.870.10%METAMeta Platforms Inc$792.490.32%MSFTMicrosoft Corp$529.720.09%NVDANVIDIA Corp$182.95-0.11%Market News and Data brought to you by Benzinga APIs

Why TSMC Stock Is Soaring Today | The Motley Fool

TSMC's share price has rocketed to a new all-time high after some very good news on the tariff front. Taiwan Semiconductor Manufacturing (TSM 4.39%) stock is surging to a new all-time high Thursday. The semiconductor fabrication leader's share price was up 5.3% as of 10:15 a.m. ET. At the same point in the daily session, the S&P 500 was up 0.3%, and the Nasdaq Composite was up 0.7%. The chip stock had been up as much as 7.1% earlier in the session. TSMC's valuation is roaring higher after the White House confirmed that the company will not be subject to a newly announced 100% tariff on semiconductors. The development looks to be a major positive catalyst for the company, and investors are responding by buying its stock in droves. TSMC will not be subject to a recently announced 100% import tax on foreign-sourced semiconductors. Given that TSMC is the far-and-away leader when it comes to contract semiconductor manufacturing services, the development suggests huge benefits for the company and also the broader semiconductor industry. Being exempt from the new tariff should help keep TSMC's strong sales and earnings momentum alive and also strengthen it against competitors. While the company already holds a dominant position in the contract chip manufacturing space, the new tariffs will make it even harder for Samsung and other non-domestic chip fabricators to gain market share from TSMC. TSMC has been posting very strong sales and earnings growth as demand for artificial intelligence (AI) semiconductors and other chips for data centers has soared. According to some estimates, the company manufactures somewhere around 90% of the world's advanced AI chips -- and its fabrication technologies offer performance advantages that make it likely that the category leader will retain its command over the market for the foreseeable future. As a result of its importance in the AI space and broader chipmaking capabilities, TSMC has taken on a high level of geopolitical importance. The company's exemption from the new chip tariffs stemmed from its moves to dramatically increase its U.S. manufacturing operations, and geopolitical dynamics will likely continue to be a key performance catalyst for the stock.