Live: Taiwan Semiconductor (NYSE: TSM) Crushes Q2 Earnings

Live Updates

Live Coverage
Updates appear automatically as they are published.

Taiwan Semi Still Rising in Premarket Trading

7:19 am
by Eric Bleeker

Taiwan Semiconductor shares remain elevated in premarket trading. If the company’s 3.4% gains hold when the market opens, it will trade for more than $1 trillion in market cap. 

No Change to Capital Expenditures Forecast

7:13 am
by Eric Bleeker

One note: while Taiwan Semiconductor raised its revenue target to 30% for the year, it helds its capital expenditures to $38 billion to $42 billion for the year.

Another note is that while gross margins were higher this quarter (58.6%), as the company continues to buildout fabs overseas its long-term gross margin target remains at 53%.

Segment Analysis

6:22 am
by Eric Bleeker

Let’s take a look at Taiwan Semiconductor’s different segments last quarter:

As you can see, the company’s revenue growth continues to be driven by HPC, which is mostly chips used for AI. However, strength is semiconductors has expanded to be more broad. The one segment that continues to lag is Automotive.

Taiwan Semiconductor (NYSE: TSM) reported Q2 earnings this morning, and like we recently predicted at 24/7 Wall St., it absolutely smashed earnings. 

In early after-hours trading the stock is up about 4%. We’ll be updating this live blog with analysis on the company’s earnings. 

The Need-To-Know Numbers from Taiwan Semi’s Q2 Report

• Revenue: $30.07 billion (Wall Street expected $30.00 billion) 
• EPS: $2.47 (Wall Street expected $2.12) 

Both of those numbers beat, with the highlight being Taiwan Semiconductor continuing to deliver solid earnings beats. The company hit 58.6% gross margins, which was solidly above Wall Street targets of 58%. 

However, the standout figure from Taiwan Semi’s earnings was their Q3 revenue guidance:

Q3 Guidance 

• Revenue: $31.8 billion to $33 billion (Wall Street expected $31.7 billion) 
• Gross Margin: 55.5% to 57.5% 

That revenue guidance is a big beat, and what is helping propel Taiwan Semiconductor shares this morning. The company raised its 2025 outlook to 30% growth (was previously set to ‘mid-20s’). 

The single area Wall Street could be upset with from these numbers is the gross margin forecast, which is below the 58.6% gross margins Taiwan Semiconductor posted this quarter. However, Wall Street can overlook the lower margin guidance with the company delivering such strong earnings guidance. 

The post Live: Taiwan Semiconductor (NYSE: TSM) Crushes Q2 Earnings appeared first on 24/7 Wall St..