nvidia and tsmc propel market to record highs

2025-07-19 general

Taipei, Saturday, 19 July 2025.
The stock market surged to unprecedented levels this week. Nvidia and TSMC’s impressive performance drove this surge. TSMC’s earnings and forecasts, fueled by Nvidia’s AI chip demand, significantly boosted market momentum. Nvidia and AMD are again allowed to sell AI chips to China. This highlights the crucial role of AI-driven semiconductor companies in powering overall market expansion. TSMC’s success underscores the increasing importance of AI in the semiconductor industry.

tsmc’s financial highlights

TSMC’s second-quarter earnings showcased substantial growth, with revenue reaching $30.07 billion, a 44.013 44% increase year-over-year and an 18% increase sequentially [3]. Net profits also soared to $12.83 billion, marking a 67.057 67% rise compared to the previous year and a 17% increase from the last quarter [3]. These figures surpassed the company’s guidance, which projected revenue between $28.4 billion and $29.2 billion, and net profits between $11.1 billion and $11.4 billion [3]. This robust performance significantly contributed to positive market sentiment [1].

impact on taiwan stock market

The positive news from TSMC immediately impacted the Taiwan stock market [5]. Shares of TSMC listed in Taipei surged over 2% following the release of the better-than-expected second-quarter results [5]. This surge also propelled the broader Taiwan Stock Exchange Weighted Index up by 1.5% [5]. Investors responded favorably to TSMC’s strong performance, viewing it as an indicator of the overall health and prospects of the technology sector [5]. This robust market reaction highlights TSMC’s pivotal role in influencing investor confidence and driving market momentum in Taiwan [5].

revised revenue forecasts

Bolstered by sustained AI demand, TSMC has revised its annual revenue growth forecast for 2025 [7]. The company now anticipates a sales growth of approximately 30% in U.S. dollar terms, up from the earlier projection of around 25% [7]. This upward revision reflects TSMC’s confidence in the continued strength of its 3nm and 5nm technologies, as well as its high-performance computing platform [7]. While the forecast for the third quarter looks promising, the full-year guidance implies a slowdown in the fourth quarter, with revenue growth expected to range from 6% to 21% [3].

strategic expansions and investments

TSMC is actively expanding its global footprint to meet increasing demand [6][7]. The company is moving forward with plans to construct its second factory in Kumamoto, Japan, with construction slated to begin later this year, contingent on infrastructure readiness [6]. TSMC is also investing $165 billion in the United States, which includes plans for six advanced process fabs, two advanced packaging facilities, and a research and development center [7]. These strategic investments underscore TSMC’s commitment to long-term growth and its ability to capitalize on opportunities in key markets [7].

expert analysis and market outlook

Analysts note that while TSMC’s management tends to provide conservative guidance, the company’s current projections suggest a net profit between $47 billion and $50 billion for 2025 [3]. Based on the current stock price, this translates to a price-to-earnings ratio between 24 and 26, which aligns with the company’s historical valuation [3]. IG Group’s senior technical analyst Axel Rudolph observed that earnings reports significantly impact the stock market, while events related to former U.S. President Trump continue to be a focal point for investors [4]. The market is awaiting clear progress in trade negotiations between the U.S. and the European Union [4].

Bronnen

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