Taiwan Semiconductor Manufacturing Corp (NYSE:TSM) posted another strong quarter, beating expectations on both revenue and EPS. The High Performance Computing (HPC) segment—driven by AI and data center demand—saw a notable 14% sequential increase. All other segments posted quarter-over-quarter growth except Automotive, which remained flat.
Management raised full-year revenue growth guidance for fiscal 2025 to approximately 30%, up from the previous estimate in the mid-20% range. This reflects confidence in the ramp-up of the Arizona fabs and the anticipated start of N2 volume production. Currency headwinds weighed on margins this quarter, as most customer payments are in U.S. dollars (USD) while the majority of supplier costs are in New Taiwan dollars (NT). Still, management emphasized that this is a familiar challenge and one they’ve successfully navigated in the past.
For more details, key highlights, and commentary, check out the high-level earnings summary.
