Taiwan Semiconductor Manufacturing Company (TSM, Financial) shares saw a significant pre-market rise of nearly 4%, reaching $157.3. The surge follows the release of its quarterly earnings report, which revealed impressive financial performance.
For the first quarter of 2025, TSMC reported revenues of 839.25 billion New Taiwan Dollars, marking a year-on-year increase of 41.6%, though this was a slight 3.4% decrease from the previous quarter. Net income was 361.56 billion New Taiwan Dollars, a substantial 60.3% increase year-on-year, surpassing market expectations of 354.644 billion New Taiwan Dollars but decreased 3.5% compared to the previous quarter.
TSMC projects second-quarter revenues between $28.4 billion and $29.2 billion. It expects an operating profit margin of 47% to 49%, slightly adjusting from the previous quarter's 48.5%. The company anticipates maintaining a gross margin between 57% and 59%, compared to the previous 58.8%. Capital expenditures for 2025 are forecasted to be between $38 billion and $42 billion, consistent with earlier expectations.
TSMC also predicts a doubling of its artificial intelligence-related revenues by 2025 and plans to start mass production of 2nm chips in the latter half of the year.
