TSMC Earnings Preview, AI Strength Faces Tariff Headwinds

Bram de Haas
19.95K Followers
(9min)

Summary

  • TSMC's Q1 2025 earnings report shows revenue slightly ahead of estimates at $25.6 billion, driven by AI servers and smartphone chips.
  • Volatility from tariffs and strong AI growth projections make a short-term strangle on TSM attractive, despite potential tariff impacts on global trade.
  • TSM's CapEx guidance between $38 billion and $42 billion for 2025 will be crucial in assessing future demand and growth expectations.
  • The options market implies potential for a significant move for TSM around earnings but I expect this will be an event with exceptional potential up or down.

Taiwan Semiconductor Manufacturing Company (TSMC) headquarters in Silicon Valley

Sundry Photography

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) reports Q1 2025 Earnings on April 17, 2025 in the post-market. Today, we already received Q1 revenue figures that were slightly ahead of analyst estimates at $25.6 billion. AI server chips and

This article was written by

19.95K Followers
Bram de Haas brings 15 years of investing experience to the table and has over 5 years of experience managing a Euro hedge fund. He is also a former professional poker player and utilizes his bundle of risk management skills to uncover lucrative investments based on special situations.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TSM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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