After releasing its latest earnings report, Taiwan Semiconductor Manufacturing Company (TSM, Financial) saw a significant uptick in its U.S. market trading, climbing over 5% to $159.4. The company announced first-quarter revenue of 839.25 billion New Taiwan dollars, a year-on-year increase of 41.6%, though a quarter-on-quarter decline of 3.4%. Its net profit reached 361.56 billion New Taiwan dollars, up 60.3% year-on-year, surpassing market expectations of 354.644 billion New Taiwan dollars.
For the second quarter, TSMC anticipates revenue between $28.4 billion and $29.2 billion. Operating profit margins are expected to range from 47% to 49%, compared to 48.5% in the previous quarter. Gross margins are projected to be between 57% and 59%, slightly lower than the previous quarter's 58.8%. The company maintains its 2025 capital expenditure forecast at $38 billion to $42 billion. Moreover, TSMC expects its artificial intelligence-related revenue to double by 2025 and plans to begin mass production of 2nm chips in the second half of this year.
