--- title: "TSMC's earnings report exceeded expectations, with AI demand being the biggest driver. The options market predicted this in advance." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/31912334.md" description: "1. Options market bets on earnings favor On July 16th Eastern Time, $Taiwan Semiconductor(TSM.US) options market showed a clear bullish tendency, with options traders increasing their bullish bets. Data shows that the cost of hedging against a drop in TSMC's stock price has fallen to its lowest level since January. The total trading volume for the day reached 210,800 contracts, with call options accounting for 52.52% and put options for 47.48%. The total open interest was approximately 1.7879 million contracts, close to the 30-day trading average. 2. Quick Interpretation of Q2 Earnings On July 17th Eastern Time..." datetime: "2025-07-17T09:23:48.000Z" locales: - [en](https://longbridge.com/en/topics/31912334.md) - [zh-CN](https://longbridge.com/zh-CN/topics/31912334.md) - [zh-HK](https://longbridge.com/zh-HK/topics/31912334.md) author: "[热点君](https://longbridge.com/en/profiles/1450684.md)" --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/31912334.md) | [繁體中文](https://longbridge.com/zh-HK/topics/31912334.md) # TSMC's earnings report exceeded expectations, with AI demand being the biggest driver. The options market predicted this in advance. #### 1\. Options Market Bets on Earnings Report Favorably On July 16, Eastern Time, the options market for $Taiwan Semiconductor(TSM.US) showed a clear bullish bias, with options traders increasing their bullish bets. Data shows that the cost of hedging against a decline in TSMC's stock price has fallen to its lowest level since January. Total trading volume for the day reached 210,800 contracts, with call options accounting for 52.52% and put options for 47.48%. Open interest totaled approximately 1.7879 million contracts, close to the 30-day trading average. #### 2\. Quick Interpretation of Q2 Earnings On July 17, Eastern Time, TSMC announced its Q2 earnings. Thanks to strong demand for AI chips, TSMC's Q2 revenue surged 38.6%, and net profit soared 61%, delivering an impressive quarterly report. TSMC's latest earnings report shows: **Revenue:** Revenue reached NT$933.79 billion, a significant increase of 38.6% year-over-year. **Net Profit:** Net profit reached NT$398.3 billion, up 10.2% quarter-over-quarter and 60.7% year-over-year, far exceeding market expectations of NT$376.42 billion. **Earnings Per Share (EPS):** Diluted EPS was NT$15.36, up 60.7% year-over-year, in line with net profit growth. **Profitability:** Significantly improved, with all margin metrics showing clear upward trends. **Watch Here:**[TSMC (TSM.US) 2025 Q2 Earnings Conference Call](https://longportapp.cn/zh-CN/lives/329255?channel=nl329255&invite-code=GFVT7X&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN) #### 3\. Investment Outlook and Risk Warnings **1) AI Demand as the Core Growth Driver** TSMC's strong performance is primarily driven by robust demand for AI chips: Utilization rates for advanced processes below 7nm remain high, with revenue share rising to 74%. High-performance computing (HPC) contributed 60% of revenue, with major clients like $NVIDIA(NVDA.US) and $AMD(AMD.US) continuing to place additional orders. Mizuho Securities Director Kevin Wang noted: "TSMC faces almost no substantive competition in advanced processes, giving it unique pricing power." Related stocks and ETFs: $ASML(ASML.US), $Applied Materials(AMAT.US), $Direxion Semicon Bull 3X(SOXL.US), $Leverage Shares 2X Long TSM Daily ETF(TSMG.US), $Direxion Daily TSM Bull 2X Shares(TSMX.US), $GraniteShares 2x Long TSM Daily ETF(TSMU.US), $YieldMax TSM Option Inc Strat ETF(TSMY.US). **2) Risk Factors to Monitor** Despite optimistic market sentiment, investors should remain cautious of potential risks: Currency Fluctuations: A stronger New Taiwan Dollar could impact gross margins. Geopolitics: The U.S. CHIPS Act may increase costs for overseas manufacturing. Related stocks and ETFs: $Direxion Semicon Bear 3X(SOXS.US), $Direxion Daily TSM Bear 1X Shares(TSMZ.US). ### Related Stocks - [Taiwan Semiconductor Manufacturing Company Limited (TSM.US)](https://longbridge.com/en/quote/TSM.US.md) - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [Advanced Micro Devices, Inc. (AMD.US)](https://longbridge.com/en/quote/AMD.US.md) - [GraniteShares 2x Long TSM Daily ETF (TSMU.US)](https://longbridge.com/en/quote/TSMU.US.md) - [Direxion Daily TSM Bear 1X Shares (TSMZ.US)](https://longbridge.com/en/quote/TSMZ.US.md) - [ASML Holding N.V. (ASML.US)](https://longbridge.com/en/quote/ASML.US.md) - [Applied Materials, Inc. (AMAT.US)](https://longbridge.com/en/quote/AMAT.US.md) - [Direxion Daily Semicondct Bull 3X ETF (SOXL.US)](https://longbridge.com/en/quote/SOXL.US.md) - [Leverage Shares 2X Long TSM Daily ETF (TSMG.US)](https://longbridge.com/en/quote/TSMG.US.md) - [Direxion Daily TSM Bull 2X Shares (TSMX.US)](https://longbridge.com/en/quote/TSMX.US.md) - [YieldMax TSM Option Inc Strat ETF (TSMY.US)](https://longbridge.com/en/quote/TSMY.US.md) - [Direxion Daily Semicondct Bear 3X ETF (SOXS.US)](https://longbridge.com/en/quote/SOXS.US.md)