Stock futures were mixed early Thursday as investors brushed off worries over Federal Reserve independence; United Airlines (UAL) shares fell after its revenue came in lower than expected; Taiwan Semiconductor Manufacturing Co. (TSM) shares rose after it boosted its full-year revenue outlook on strong AI demand; U.S. retail sales are expected to improve in June; MP Materials (MP) shares fell after it proposed to raise $500 million.
Taiwanese chipmaking giant TSMC reported Thursday a forecast-beating 60% rise in net profit for the second quarter on sustained demand for artificial intelligence technology.
TSMC, the world's largest chipmaker, saw a surge in profit thanks to demand for AI chips. CNBC's Arjun Kharpal breaks down the results.
TSMC's second-quarter profit soars nearly 61% as AI chip demand stays strong
TSMC , the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels on Thursday, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Surging demand for advanced AI chips is likely to have driven TSM's Q2 revenues, while rising operational costs may have weighed on earnings.
TSMC remains a top AI play, offering safety and value compared to peers, with robust AI-driven demand fueling growth. The Q2 revenue beat seems to be already locked in based on preliminary data. I expect a strong EPS beat as AI pricing power offsets new fab costs. While TSMC is no longer "dirt cheap," its valuation is justified by superior margins, a widening moat, and ongoing dividend growth.
TSMC , the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook.
The Zacks Expected Surprise Prediction (ESP) suggests GE Aerospace (GE) and Taiwan Semiconductor (TSM) could once again surpass their quarterly earnings expectations.
TSMC is the foundational chip manufacturer for leading AI and tech companies, with unmatched scale and technology vs. competitors like Samsung and Intel. The AI boom is fueling massive, sustained demand for advanced chips, positioning TSMC as the primary beneficiary across the industry. Despite its central role, TSMC trades at a significant discount to peers on key valuation metrics, indicating the stock is undervalued.
Taiwan Semiconductor seems worth buying, considering favorable valuations and a likely Q2 earnings beat fueled by AI demand and tech leadership.