Trump says he has no plans to fire Powell; TSMC reports - what’s moving markets
Taiwan Semiconductor Manufacturing (NYSE:TSM) reported June revenue of $8.9 billion, surpassing analyst estimates of $8.51 billion. This reflects a 26.9% year-over-year increase in local currency terms. Despite exceeding expectations, TSMC’s stock price showed some uncertainty following the announcement, which could be attributed to factors such as market sentiment, broader industry conditions, or future outlook concerns. Overall, the strong sales growth underscores TSMC’s leading position in the global semiconductor manufacturing industry.
Key Highlights
- Taiwan Semiconductor Manufacturing Company has been experiencing robust demand for its AI-focused products, particularly its advanced packaging solutions like Chip-on-Wafer-on-Substrate.
- The company dominates high-end chip manufacturing and there is little to suggest it will face a much competitive threat in the coming years.
- TSM has projected that its revenue from AI-related chips will double in 2025, reflecting the rapidly expanding demand for AI technologies. Additionally, the company anticipates a compound annual growth rate (CAGR) of around mid-40% over the next five years for its AI-related chip segment.
- TSM also makes the core processors inside Apple (NASDAQ:AAPL) iPhones, Qualcomm (NASDAQ:QCOM) mobile chipsets, and processors made by Advanced Micro Devices (NASDAQ:AMD). While that leaves it exposed to cyclical changes in demand for smartphones and other devices, relative to Nvidia (NASDAQ:NVDA), it also gives it a more diversified revenue base.
Source: InvestingPro
Source: InvestingPro
TSM Q2 2025 earnings before market Thursday July 17, 2025
Technical Analysis Perspective
- TSM is facing a key rising resistance line around January 2025 which is the previous high recorded at 226.40.
- The above-mentioned obstacle contains rallies around 239 -240 mark.
- TSM has had a tendency of forming rectangle consolidation before recording higher highs since March 2020.
- Prices formed three rectangles in a row during March 2020 to February 2021 rally (Pattern 1)
- Prices recorded three rectangles during September 223 to March 2024 rise (Pattern 2).
- A similar pattern is in the making since April 2025 suggesting a break above 239 – 240 post earning will extend the gains into uncharted territory.
Weekly Candlestick Chart
TSM Seasonality Chart
TSM closes 3.2% higher in July 50% of the time since 2006, which gives 50% probability of a move either side.
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