Taiwan Semiconductor Stock Soars 18% YTD: Time to Hold or Book Profit?
Taiwan Semiconductor stock has also moved ahead of several chip peers, including ASML Holding ASML, ON Semiconductor ON and Marvell Technology MRVL. Shares of ASML Holding, ON Semiconductor and Marvell Technology have fallen 0.5%, 25.1% and 30.6%, respectively, YTD.
YTD Price Return Performance
This outperformance shows investors remain confident in Taiwan Semiconductor's long-term story, even during a volatile market shaped by trade conflicts and geopolitical risks. We believe this momentum is grounded in strong fundamentals, and TSM's long-term outlook justifies a hold position for now.
AI Boom: A Multi-Year Growth Catalyst for TSM
Taiwan Semiconductor continues to dominate the semiconductor foundry space. TSMC is known for its advanced production capabilities and has already moved into 3nm production, with 2nm coming soon. Its large scale allows it to handle rising AI chip demand better than most competitors. The ongoing artificial intelligence (AI) boom has placed TSMC at the center of a multi-year structural growth cycle.
Taiwan Semiconductor has established itself as the preferred manufacturing partner for AI accelerators, including graphics processing units (GPUs) and custom silicon developed by major players like NVIDIA, Marvell Technology and Broadcom.
In 2024, AI-related revenues tripled, making up a mid-teen percentage of Taiwan Semiconductor Manufacturing's total revenues, and the momentum is far from over. TSMC expects AI-related sales to double again in 2025, with an impressive 40% compound annual growth rate over the next five years. This positions TSM as the undisputed backbone of AI-driven technological advancements.
To capitalize on the AI-driven growing demand for advanced chips, Taiwan Semiconductor is investing heavily in expanding production capabilities. The company is set to invest between $38 billion and $42 billion in capital expenditures in 2025, far outpacing its $29.8 billion investment in 2024. The bulk of this spending, around 70%, is focused on advanced manufacturing processes, ensuring TSM stays ahead of other chip manufacturing rivals.
TSMC's Resilient Financial Performance
Taiwan Semiconductor's latest earnings report highlights just how dominant the company remains. In the second quarter of 2025, TSM's revenues surged 44% year over year to $30.07 billion, while EPS jumped 61% to $2.47. This growth was powered by the booming demand for its advanced 3nm and 5nm nodes, which now account for 58% of total wafer sales. Gross margins improved 540 basis points to 58.6%, reflecting better cost efficiencies.
Buoyed by strong demand for its 3nm and 5nm chips, Taiwan Semiconductor raised its revenue growth guidance for full-year 2025 to 30% from mid-20% projected earlier. For the third quarter, TSMC expects revenues in the range of $31.8-$33 billion, calling for a sequential increase of 6%-10%. The Zacks Consensus Estimate for third-quarter and full fiscal 2025 revenues is pegged at $32.38 billion and $118.11 billion, respectively.
Favorable Valuation: A Reason to Hold TSM Stock
Despite a robust rally, Taiwan Semiconductor stock still looks reasonably priced. It trades at a forward 12-month price-to-earnings (P/E) multiple of 22.27, which is lower than the sector average of 27.47. This discount adds to the appeal for long-term investors.
Compared with other major semiconductor players, Taiwan Semiconductor has a higher P/E ratio than ON Semiconductor but has a lower multiple than ASML Holding and Marvell Technology. At present, ASML Holding, ON Semiconductor and Marvell Technology trade at P/E multiples of 24.33, 16.92 and 24.01, respectively.
Near-Term Challenges Persist for TSMC
Despite its strengths, Taiwan Semiconductor faces near-term headwinds. Higher energy prices in Taiwan, following a 25% electricity hike in 2024, pose a considerable challenge, especially as advanced nodes demand greater power.
Softness in key markets like PCs and smartphones also dampens near-term prospects. These traditionally strong revenue drivers are projected to see only low single-digit growth in 2025, limiting Taiwan Semiconductor's growth despite rising AI demand.
The company's global expansion strategy adds further strain. New fabs in the United States (Arizona), Japan and Germany are vital for geopolitical risk mitigation, but they come with higher costs. These facilities are expected to drag down gross margins by 2-3 percentage points annually over the next three to five years due to higher labor and energy costs, along with lower utilization rates in the early stages.
Escalating geopolitical tensions, particularly U.S.-China relations, pose strategic risks. With significant revenue exposure to China, Taiwan Semiconductor is vulnerable to export restrictions, supply-chain disruptions or further regulatory pressure. These uncertainties could weigh on near-term performance.
Conclusion: Hold TSM Stock for Now
Taiwan Semiconductor remains a cornerstone of the semiconductor industry. Its unmatched capabilities in advanced chip manufacturing, strong exposure to AI demand and expanding capacity give it a solid long-term trajectory.
However, short-term headwinds, from rising costs and global expansion pressures to geopolitical friction, call for a more cautious stance. Given its valuation and growth backdrop, holding the stock makes the most sense right now.
Taiwan Semiconductor carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ASML Holding N.V. (ASML): Free Stock Analysis Report
Marvell Technology, Inc. (MRVL): Free Stock Analysis Report
ON Semiconductor Corporation (ON): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
3 hours ago
- National Post
Doximity Acquires Pathway, a Leader in AI Clinical Reference
Article content $63M acquisition brings physician AI team and datasets to Doximity's AI suite Article content SAN FRANCISCO — Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced that it has acquired Pathway Medical Inc., a Montreal-based startup specializing in medical AI and evidence-based clinical reference. Article content Article content Physicians make up half of Pathway's team. Over the past seven years, they've assembled one of the largest structured datasets in medicine—purpose-built for AI—spanning nearly every guideline, drug, and landmark trial across all major specialties. Pathway's model outperforms others in clinical accuracy, recently scoring a record 96% on the U.S. Medical Licensing Examination (USMLE) benchmark. Article content 'We're thrilled to welcome the Pathway team to Doximity,' said Jeff Tangney, co-founder and CEO of Doximity. 'They've painstakingly built one of the best datasets in medicine, and it's going to take our clinical reference capabilities to an entirely new level.' Article content 'There's a growing need for clinical tools that combine trusted evidence with the speed and adaptability of AI,' said Jon Hershon, CEO of Pathway. 'Hundreds of thousands of users have registered for Pathway, and thousands pay $300 per year for our premium product. With Doximity, one of the most trusted platforms in healthcare, we're now bringing that experience to millions for free, built directly into the tools they already use at the point of care.' Article content The transaction closed on July 29, 2025 for cash consideration of $26 million and up to $37 million in additional equity grants. Article content About Doximity Article content Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 80% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. Doximity's mission is to help doctors be more productive so they can provide better care for their patients. Article content About Pathway Article content Pathway helps clinicians deliver better, faster, more informed care by providing instant and evidence-based answers to medical questions. The AI-powered platform has hundreds of thousands of registered users, with a strong presence in the U.S. and internationally. The company is headquartered in Montreal, Canada. Article content Article content Article content For investors: Article content Article content Perry Gold Article content Article content Article content
Globe and Mail
3 hours ago
- Globe and Mail
Palantir Achieves $1B Revenues, Is It Too Late to Invest?
Due to the rapid growth of artificial intelligence (AI), large tech companies like NVIDIA Corporation NVDA and Inc. AMZN have experienced substantial expansion, raising questions about their future growth. Instead, emerging companies like Palantir Technologies Inc. PLTR are attracting more investor interest, especially after the company recently achieved record revenue growth and raised its forecast. However, with Palantir's shares soaring 512% over the past year, is it too late to invest, or does it still offer a solid investment opportunity? Let's explore— Palantir Reports Record Q2, Surpasses $1B Revenues Palantir's revenues hit $1 billion for the first time in the second quarter, rising 14% sequentially and 48% year over year. The company's earnings per share (EPS) for the quarter were $0.16, a 78% increase year over year. Both results beat Wall Street's estimates, which projected revenues of $939 million and an adjusted EPS of $0.14. Revenues were mainly driven by the U. S. commercial segment, with a steady flow of new customers attracted to Palantir's Artificial Intelligence Platform (AIP). Revenues from this segment reached $306 million, accounting for 31% of total revenues. This was a 20% increase from the previous quarter and a 93% rise year over year. Palantir's U. S. commercial customer count grew by 12% sequentially and 64% year over year. Furthermore, existing customers are spending more, as shown by Palantir's net dollar retention rate of 128%. Palantir Raises Full-Year Outlook, Confident of Future Growth The company increased its full-year guidance, now expecting revenues between $4.142 billion and $4.150 billion, up from the previous forecast of $3.89 billion to $3.90 billion. For the third quarter, Palantir projects revenues between $1.083 billion and $1.087 billion, surpassing Wall Street's estimate of $983 million. The company also upgraded its projections for operating income and cash flow for the entire year. Additionally, Palantir's remaining performance obligation (RPO), or the revenues guaranteed by contracts but not yet recognized, jumped 77% to $2.42 billion in the second quarter. This indicates potential for future growth, and the outlook remains optimistic. Palantir's CEO, Alex Karp, expressed enthusiasm about the company's prospects, stating in the quarterly letter to shareholders that 'this is still only the beginning of something much larger and, we believe, even more significant.' How to Trade Palantir Stock Now Palantir's robust quarter, propelled by AI and optimistic growth outlooks, should reassure investors to hold onto their shares. Also, Palantir's steady defense contracts create significant barriers for new competitors, while an increase in commercial clients points to potential long-term expansion. However, with a price-to-earnings (P/E) ratio of 308.1 compared to the Internet - Software industry's forward P/E of 43.56, Palantir's stock appears overvalued relative to its earnings. Therefore, new investors should wait for a price correction or decline before investing. For now, Palantir has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Beyond Nvidia: AI's Second Wave Is Here The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years. See "2nd Wave" AI stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
3 hours ago
- Globe and Mail
Bright Mountain Media, Inc. Announces Second Quarter 2025 Financial Results
Second quarter revenue increased to $15.4 million compared to $13.0 million for the second quarter of 2024. Half year revenue increased by $4.1 million to $29.6 million compared to $25.5 million for the same period of 2024. Boca Raton, FL, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTCQB: BMTM) ('Bright Mountain' or the 'Company'), a global holding company with current investments in digital publishing, advertising technology, consumer insights, creative services, and media services, today announced its financial results for the second quarter and six months ended June 30, 2025. Matt Drinkwater, CEO of Bright Mountain, announced that the Company experienced continued financial momentum in the second quarter of the year, highlighting solid gains across key performance metrics. "We are very pleased with our strong and steady financial performance", said Drinkwater, emphasizing the Company's consistent growth. "In Q2, revenue increased to $15.4 million, compared to $13.0 million in the second quarter of 2024, demonstrating meaningful operational leverage and strategic execution." The Company attributes its revenue growth primarily to its advertising technology division, which is effectively matching demand from leading advertisers with premium ConnectedTV advertising inventory via the Company's technology platform. This strategy enabled the Company to partner with a growing list of premium publishers and streaming platforms, resulting in increased volume, higher rates, and overall revenue growth. Financial Results for the Three Months Ended June 30, 2025 Revenue was $15.4 million, an increase of $2.4 million, or 18%, compared to $13.0 million for the same period of 2024. The increase in revenue was primarily from our advertising technology division, and was driven by our ability to leverage our resources to attract top advertisers, which in turn allowed us to onboard premium publishers. This led to an increase in volume, as well as rates and overall revenue. The increase was partially offset by a decline in revenue from our digital publishing division, which was primarily impacted by macroeconomic factors, which reduced traffic to our website, coupled with an overall reduction in spending by some customers related to inflationary concerns. Advertising technology revenue was approximately $5.1 million, digital publishing revenue was approximately $359,000, consumer insights revenue was approximately $7.3 million, creative services revenue was approximately $1.7 million, and media services revenue was approximately $869,000, during the second quarter of 2025. Cost of revenue was $12.4 million, an increase of $2.8 million, or 29%, compared to $9.6 million for the same period in 2024. The increase is mainly a result of increased publisher costs of $1.4 million, driven by the increase noted in revenue for our advertising technology division, and increased direct project costs of $1.9 million, driven by the increase noted in revenue for our consumer insights and media services divisions. Cost of revenue is inclusive of direct salary and labor costs of approximately $1.8 million for employees that work directly on customer projects; direct project costs of approximately $4.9 million for payments made to third-parties that are directly attributable to the completion of projects to allow for revenue recognition; non-direct project costs of approximately $1.2 million; publisher costs of approximately $3.7 million, and sales commissions of approximately $316,000. General and administrative expense was $4.0 million, a decrease of $1.3 million, or 24%, compared to $5.3 million in the same period of 2024. Gross margin was $3.0 million, a decrease of 11%, compared to $3.4 million in the same period of 2024. Net loss was $4.1 million, a decrease of 22%, compared to a $5.2 million net loss in the same period of 2024. Adjusted EBITDA loss was $218,000, an improvement of 76%, compared to Adjusted EBITDA loss of $920,000 in the same period of 2024. See the below section on Non-GAAP Financial Measure for a reconciliation of net loss to EBITDA and Adjusted EBITDA. Financial Results for the Six Months Ended June 30, 2025 Revenue was $29.6 million, an increase of $4.1 million, or 16%, compared to $25.5 million for the same period of 2024. The increase in revenue was primarily from our advertising technology division, and was driven by our ability to leverage our resources to attract top advertisers, which in turn allowed us to onboard premium publishers. This led to an increase in volume, as well as rates and overall revenue. The increase was partially offset by a decline in revenue from our creative services division, which was primarily due to a decrease in the number of projects for small tier revenue customers. Advertising technology revenue was approximately $9.3 million, digital publishing revenue was approximately $942,000, consumer insights revenue was approximately $14.4 million, creative services revenue was approximately $3.2 million, and media services revenue was approximately $1.7 million, during the first half of 2025. Cost of revenue was $22.3 million, an increase of $3.4 million, or 18%, compared to $18.9 million for the same period in 2024. Cost of revenue is inclusive of direct salary and labor costs of approximately $3.7 million for employees that work directly on customer projects; direct project costs of approximately $8.5 million for payments made to third-parties that are directly attributable to the completion of projects to allow for revenue recognition; non-direct project costs of approximately $2.2 million; publisher costs of approximately $6.7 million, and sales commissions of approximately $575,000. General and administrative expense was $8.5 million, a decrease of 19%, compared to $10.6 million in the same period of 2024. Gross margin was $7.3 million, an increase of 11%, compared to $6.6 million in the same period of 2024. Net loss was $7.3 million, a decrease of 27%, compared to a $10.0 million net loss in the same period of 2024. Adjusted EBITDA was $599,000, an improvement of 130%, compared to Adjusted EBITDA loss of $2.0 million in the same period of 2024. See the below section on Non-GAAP Financial Measure for a reconciliation of net loss to EBITDA and Adjusted EBITDA. About Bright Mountain Media Bright Mountain Media, Inc. (OTCQB: BMTM) unites a diverse portfolio of companies to deliver a full spectrum of advertising, marketing, technology, and media services under one roof—fused together by data-driven insights. Bright Mountain Media's subsidiaries include Deep Focus Agency, LLC, MediaHouse, Inc., BV Insights, LLC, CL Media Holdings, LLC, and Bright Mountain, LLC d/b/a BrightStream. For more Information, please visit Forward-Looking Statements for Bright Mountain Media, Inc. This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as 'should,' 'may,' 'intends,' 'anticipates,' 'believes,' 'estimates,' 'projects,' 'forecasts,' 'expects,' 'plans,' and 'proposes,' and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to successfully integrate acquisitions, and the realization of any expected benefits from such acquisitions. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading 'Risk Factors' in Bright Mountain.'s Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the SEC. Bright Mountain does not undertake any duty to update any forward-looking statements except as may be required by law. Contact / Investor Relations: Douglas Baker Email:corp@ Tel: (561) 807-6350 BRIGHT MOUNTAIN MEDIA, INC. (unaudited) (in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue $ 15,408 $ 13,003 $ 29,598 $ 25,450 Cost of revenue 12,371 9,581 22,289 18,892 Gross margin 3,037 3,422 7,309 6,558 General and administrative expenses 4,021 5,310 8,545 10,552 Loss from operations (984) (1,888) (1,236) (3,994) Financing and other expense: Other income 44 53 91 397 Interest expense - Centre Lane senior secured credit facility - related party (3,135) (3,360) (6,155) (6,352) Interest expense - 10% convertible promissory notes - related party - (2) - (4) Other interest expense (6) (11) (12) (21) Total financing and other expense, net (3,097) (3,320) (6,076) (5,980) Net loss before income tax (4,081) (5,208) (7,312) (9,974) Income tax provision - - - - Net loss $ (4,081) $ (5,208) $ (7,312) $ (9,974) Foreign currency translation (199) 38 (157) 72 Comprehensive loss $ (4,280) $ (5,170) $ (7,469) $ (9,902) Net loss per common share: Basic $ (0.02) $ (0.03) $ (0.04) $ (0.06) Diluted $ (0.02) $ (0.03) $ (0.04) $ (0.06) Weighted-average shares outstanding: Basic 175,965,052 171,095,661 175,969,993 171,155,364 Diluted 175,965,052 171,095,661 175,969,993 171,155,364 BRIGHT MOUNTAIN MEDIA, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 30, 2025 December 31, 2024 * (unaudited) Assets Current assets: Cash and cash equivalents $ 1,678 $ 2,546 Restricted cash 1,861 1,861 Accounts receivable, net 14,050 15,033 Prepaid expenses and other current assets 1,222 859 Total current assets 18,811 20,299 Property and equipment, net 90 69 Intangible assets, net 12,436 13,406 Goodwill 7,785 7,785 Operating lease right-of-use assets 215 253 Other long-term assets 159 158 Total assets $ 39,496 $ 41,970 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable and accrued expenses $ 22,311 $ 22,667 Other current liabilities 2,522 4,401 Interest payable - Centre Lane senior secured credit facility - related party - 21 Deferred revenue 6,594 2,883 Note payable - Centre Lane senior secured credit facility - related party (current) 4,673 3,808 Total current liabilities 36,100 33,780 Other long-term liabilities 91 169 Note payable - Centre Lane senior secured credit facility - related party (long-term) 73,781 71,043 Finance lease liabilities 7 20 Operating lease liabilities 140 185 Total liabilities 110,119 105,197 Stockholders' deficit: Convertible preferred stock, par value $0.01, 20,000,000 shares authorized, no shares issued or outstanding at June 30, 2025 and December 31, 2024, respectively - - Common stock, par value $0.01, 324,000,000 shares authorized, 177,515,227 and 177,464,827 issued, and 175,965,052 and 176,114,652 outstanding at June 30, 2025 and December 31, 2024, respectively 1,776 1,775 Treasury stock at cost, 1,550,175 and 1,350,175 shares at June 30, 2025 and December 31, 2024, respectively (220) (220) Additional paid-in capital 101,870 101,798 Accumulated deficit (174,169) (166,857) Accumulated other comprehensive income 120 277 Total stockholders' deficit $ (70,623) $ (63,227) Total liabilities and stockholders' deficit $ 39,496 $ 41,970 * Derived from audited consolidated financial statement Non-GAAP Financial Measure Non-GAAP results are presented only as a supplement to the financial statements and for use within management's discussion and analysis based on U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information is provided to enhance the reader's understanding of the Company's financial performance, but non-GAAP measures should not be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP. All of the items included in the reconciliation from net loss before taxes to EBITDA and from EBITDA to Adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles, stock-based compensation, etc.) or (ii) items that management does not consider to be useful in assessing the Company's ongoing operating performance (e.g., M&A costs, income taxes, gain on sale of investments, loss on disposal of assets, etc.). In the case of the non-cash items, management believes that investors can better assess the Company's operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect the Company's ability to generate free cash flow or invest in its business. We use, and we believe investors benefit from the presentation of, EBITDA and Adjusted EBITDA in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations. We believe that EBITDA is useful to investors and other external users of our financial statements in evaluating our operating performance because EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, and depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired. Because not all companies use identical calculations, the Company's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the Company's performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. A reconciliation of net loss before taxes to non-GAAP EBITDA and Adjusted EBITDA is as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (in thousands) Net loss before tax $ (4,081) $ (5,208) $ (7,312) $ (9,974) Depreciation expense 15 35 28 75 Amortization of intangibles 485 481 970 962 Amortization of debt discount 556 936 1,189 1,552 Other interest expense 6 11 12 21 Interest expense - Centre Lane Senior Secured Credit Facility and Convertible Promissory Notes 2,579 2,426 4,966 4,804 EBITDA (440) (1,319) (147) (2,560) Stock compensation expense 34 70 71 135 Non-recurring professional fees 20 - 261 - Non-recurring legal fees 111 254 357 309 Non-recurring severance expense 57 75 57 93 Adjusted EBITDA (loss) $ (218) $ (920) $ 599 $ (2,023)
