ASML & TSMC Earnings: New High Looming, Justify AI Boom?

This week, all eyes will be on two semiconductor giants (ASML and TSMC) as they release their earnings reports on Wednesday and Thursday, respectively. After a turbulent Q1 where ASML missed earnings and saw its stock plunge, TSMC pulled ahead with a strong beat on profits. Now, with TSMC’s June sales surging an impressive 39% year-over-year, the data center and AI-driven demand story looks strong, setting the stage for what could be robust 2Q25 earnings.

The semiconductor sector has already enjoyed a solid rally last week. But the big question remains: can ASML and TSMC’s earnings reports provide fresh guidance to sustain this momentum? And for those bullish on TSMC, are the valuations justified, or is there room for a correction?

Taiwan Semiconductor Manufacturing (TSM)

ASML Holding NV (ASML)

Personally, when it comes to stocks like ASML or TSMC, especially ahead of earnings, I tend to stay cautious. The market reaction after earnings can swing dramatically in either direction, and as a risk-averse investor, I’d rather miss a potential upside than suffer a sharp drop. This caution is heightened for TSMC, whose current stock price is hovering near its 52-week high, making me even more hesitant to jump in right before earnings season.

In short, while the AI-driven semiconductor story remains compelling, the upcoming earnings reports will be crucial in determining whether these tech titans can deliver growth that justifies their lofty valuations or if investors should brace for volatility ahead.

TSMC Beats and Leads! Chip Sector Rebound to Pick?

ASML delivered strong Q2 results but management warned that it may not be able to achieve growth in 2026. The stock fell 10%. Taiwan Semiconductor Manufacturing Co. reported a better-than-expected 61% jump in profit for the June quarter, bolstering confidence in the momentum of the global AI spending spree. TSMC expects Q3 revenue of $31.8-33 bln in its earnings call (vs Q3 2024 revenue $23.5 bln). TSM jumps 4% in the overnight trading and leads chip sector to rebound.

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Comments

Porter Harry
07-14
Porter Harry
Solid points raised 👏. Even with strong fundamentals, near highs often invite sharp profit-taking if guidance underwhelms.
DebbyLily
07-14
DebbyLily
Your cautious approach makes sense, especially with TSMC at a high.
PageDickens
07-14
PageDickens
It's smart to be cautious.