logo
ETFs to Capitalize on TSM's Impressive Q2 Earnings

ETFs to Capitalize on TSM's Impressive Q2 Earnings

Globe and Mail6 days ago
Taiwan Semiconductor Manufacturing TSM reported robust second-quarter 2025 results, reflecting strength in AI and HPC-related demand, continued advanced node leadership and solid execution on global expansion. The company beat estimates for both the top and the bottom lines on surging demand for advanced chips used in AI applications.
Investors seeking to tap TSM's growth could consider ETFs having the largest allocation to the world's largest contract semiconductor manufacturer. These include SP Funds S&P World ex-US ETF SPWO, SP Funds S&P Global Technology ETF SPTE, VanEck Vectors Semiconductor ETF SMH, Matthews Emerging Markets ex China Active ETF MEMX and Global X Emerging Markets ex-China ETF EMM.
Earnings in Focus
Taiwan Semiconductor reported earnings per ADR of $2.47, which outpaced the Zacks Consensus Estimate of $2.37 and improved 60.7% from the year-ago earnings. Revenues rose 38.6% year over year to $30.07 billion and were above the consensus estimate of $30.04 billion. TSMC's high-performance computing division, which encompasses artificial intelligence and 5G applications, drove sales in the second quarter, contributing 60% of revenues.
The world's largest contract chip manufacturer has been benefiting from the megatrend toward AI as it gains from producing advanced processors (3-nanometer and 5-nanometer technologies) for clients, including NVIDIA (NVDA) and Apple AAPL. The 5-nanometer wafer accounted for 36% of total revenues in the second quarter, followed by the 3-nanometer wafer at 24% and the 7-nanometer wafer at 14% (read: Tech ETFs Hit New Highs as NVIDIA Powers Market Rally).
For the third quarter of 2025, the company expects revenues of $31.8-$33 billion. The Zacks Consensus Estimate is pegged at $30.69 billion. TSM also expects its full-year 2025 revenues to rise by around 30% in U.S. dollar terms, supported by growth in AI and demand for its most advanced technologies.
ETFs to Tap
Let's delve into each ETF below:
SP Funds S&P World ex-US ETF (SPWO)
SP Funds S&P World ex-US ETF tracks the S&P DM Ex-U.S. & EM 50/50 Shariah Index, which is designed to measure the performance of sharia-compliant components of emerging market and developed market stocks, excluding U.S. stocks. It holds a basket of 375 stocks, with Taiwan Semiconductor taking the top spot at 16.8%. SP Funds S&P World ex-US ETF has accumulated $61.6 million in its asset base. It charges 55 bps in annual fees and trades in a lower average trading volume of 11,000 shares. SPWO has a Zacks ETF Rank #4 (Sell).
SP Funds S&P Global Technology ETF (SPTE)
SP Funds S&P Global Technology ETF focuses on large and mid-cap technology stocks from around the world, with a specific emphasis on companies pioneering in areas like e-commerce, cloud computing and healthcare technology. It follows the S&P Global 1200 Shariah Information Technology index and holds 94 stocks in its basket. Taiwan Semiconductor occupies the second position with an 11.1% share. SP Funds S&P Global Technology ETF has accumulated $61.6 million in its asset base and charges 55 bps in fees per year. It trades in a volume of 11,000 shares a day on average.
VanEck Vectors Semiconductor ETF (SMH)
VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with Taiwan Semiconductor occupying the second position at 11.3%. VanEck Vectors Semiconductor ETF has managed assets worth $27.3 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 8 million shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Tariff-Led Volatility Ahead for Big Tech? ETFs in Focus).
Matthews Emerging Markets ex China Active ETF (MEMX)
Matthews Emerging Markets ex China Active ETF seeks alpha in Global Emerging Markets ex China and capitalizes on consumption and innovation trends. It holds 76 stocks, with TSM being the top firm with 11.6% share. Matthews Emerging Markets ex China Active ETF has AUM of $35.5 million and charges 79 bps in annual fees. It trades in a volume of 1,000 shares a day on average.
Global X Emerging Markets ex-China ETF (EMM)
Global X Emerging Markets ex-China ETF is an actively managed fund seeking to invest in emerging market companies, excluding China, which are believed to achieve or maintain a dominant position within their respective market. As part of its investment strategy, EMM aims to identify early winners in growing industries where entrepreneurship can produce long-term global competitiveness. Global X Emerging Markets ex-China ETF holds 49 stocks in its basket, with Taiwan Semiconductor taking the second position at 15.2% share. Global X Emerging Markets ex-China ETF has AUM of $27.3 million and charges 76 bps in annual fees. It trades in a volume of 26,000 shares a day on average.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Apple Inc. (AAPL): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
SP Funds S&P World (ex-US) ETF (SPWO): ETF Research Reports
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why C3.ai Stock Plummeted Today
Why C3.ai Stock Plummeted Today

Globe and Mail

time22 minutes ago

  • Globe and Mail

Why C3.ai Stock Plummeted Today

Key Points stock sank today after the company announced that it had started looking for its next CEO. Tom Siebel founded and has been its CEO ever since, but he is stepping back from the role due to health reasons. Wedbush Morgan thinks that Siebel's exit from the CEO position increases the chances that will be acquired. 10 stocks we like better than › (NYSE: AI) stock got hit with big sell-offs today after the company announced a major leadership change. The company's share price ended the daily session down 10.8% announced today that CEO Tom Siebel would be stepping down and that the company was in the process of looking for its next chief executive. With today's pullback, the company's stock is down roughly 24.5% across 2025's trading. stock sank following news of Siebel's exit published a press release today announcing that it had begun looking for a successor for CEO Tom Siebel. Due to health reasons, Siebel will be stepping down. Siebel founded the company in 2009, but he was diagnosed with an autoimmune disease earlier this year and has been dealing with visual impairment issues that are causing him to step down from the company's head leadership role. What's next for Wedbush Morgan published new coverage on today and stated that Siebel stepping down from the CEO role was a net negative and that the leadership transition increases the chances that the company will be acquired within the next three to 12 months. On the other hand, Wedbush maintained an outperform rating on the stock and kept a one-year price target of $35 per share. The price target implies upside of roughly 35% compared to the stock's valuation at today's market close. Despite strong valuation tailwinds for many artificial intelligence (AI) stocks this year, has seen significant pullbacks across 2025's trading. Sales increased roughly 36% year over year to hit $108.7 million in the fourth quarter of the company's last fiscal year, which ended April 30, but performance for its shares has lagged behind other big AI names due to profitability concerns. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of July 21, 2025

Companies focused on AI see surge this earnings season
Companies focused on AI see surge this earnings season

Globe and Mail

time38 minutes ago

  • Globe and Mail

Companies focused on AI see surge this earnings season

Businesses focused on artificial intelligence are raking it in so far this earnings season. Those catering to actual people, less so. The AI spending surge is providing a big boost for semiconductor and software giants like Google parent Alphabet Inc. GOOGL-Q, while companies from airlines to restaurants and food manufacturers are struggling to navigate an erratic U.S. trade policy which is boosting costs, upending supply chains and hurting consumer confidence. Along with Alphabet, SK Hynix and India's Infosys exceeded market forecasts on Thursday and predicted brighter days to come, with Alphabet and SK Hynix both flagging plans to boost spending. SK supplies the world's most valuable company Nvidia Corp. NVDA-Q, the AI chipmaking giant that recently surpassed US$4-trillion in market value. By contrast, executives at many consumer names were less enthusiastic, from luxury bellwether LVMH, packaged food giant Nestle, to toymakers Hasbro and Mattel and airlines Southwest and American. They, along with automakers and giants like Coca-Cola, have indicated that some segments of the buying public have pulled in their spending as prices and interest rates remain high. The dichotomy is evident in IBM's results. Sales in Big Blue's 'AI book of business' grew 25 per cent in its most recent quarter to US$7.5-billion, while its software segment fell short of expectations and the company sounded cautious about how much its consulting segment might grow this year. The equity market has accentuated the positive. News that the U.S. had struck a trade deal with Japan and was closing in on a deal with the European Union ahead of an Aug 1. deadline boosted markets. The broad S&P 500 notched another record this week and the Eurostoxx was just a few points shy of that mark. Airlines are using AI to set ticket prices. Here's how you can avoid price manipulation when booking flights 'The market is getting friendly with a view that tariffs ending up higher than they have ever been for 100 years will not have a negative impact on economic growth, because we haven't seen any negative impact on economic growth so far,' said Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments. Whether companies continue to absorb that hit remains to be seen. So far, companies have reported over July 16-22 a combined full-year loss of as much as US$7.8-billion, with automotive, aerospace and pharmaceutical sectors hurt the most by tariffs, according to a Reuters tariff tracker. U.S. averages have been buoyed by the so-called Magnificent Seven, a group of tech giants that has benefited heavily from spending plans on artificial intelligence, and currently accounts for more than 30 per cent of the value of the S&P. 'AI is one of the strongest areas of growth for the economy, and the market mirrors the economy,' said Adam Sarhan, chief executive of 50 Park Investments. To be sure, the market's reaction may be in part because a larger-than-normal percentage of companies are clearing a lowered bar for estimates. Walmart unveils AI super agents roll-out to boost e-commerce growth At the beginning of April, the market expected 10.2 per cent year-over-year S&P earnings growth, but by July, that number had dropped to 5.8 per cent, according to LSEG data. With about 30 per cent of constituents reporting results, the blended earnings growth rate sits at 7.7 per cent. AI-focused businesses continued to print money in the most recent quarter. Nvidia supplier SK Hynix posted record quarterly profit, boosted by demand for artificial intelligence chips and customers stockpiling ahead of potential U.S. tariffs. Indian IT services provider Infosys raised the floor of its annual revenue forecast range to 1 per cent to 3 per cent, from flat to 3 per cent, matching analyst expectations. 'The tech community is going ahead full speed ahead ... and banks are in a very strong position now,' said Bill George, former chairman and CEO of Medtronic and executive education fellow at Harvard Business School. 'Other companies will struggle to get growth.' Consumer companies have been less upbeat. Nestle, the world's biggest packaged food maker, reported softer demand as it struggled to win thrifty shoppers to its big brands. U.S. airlines Southwest and American Airlines warned that Americans are travelling less, the latest signal that U.S. consumers are remaining cautious about their spending. Toymakers Mattel and Hasbro both said uncertainties around tariffs are acting as a headwind. Carmakers are among firms dealing with the most difficulty. The auto giants are resisting raising prices, eating the cost of tariffs that may cost them millions or billions of dollars. Levies on metals, copper and auto parts made it harder to navigate changing tariff policies. South Korea's Hyundai Motor on Thursday posted a 16-per-cent decline in second-quarter operating profit, saying U.S. tariffs cost it 828-billion won (US$606.5-million) in the second quarter, with a bigger hit expected in the current quarter. General Motors still expects a US$4-billion to US$5-billion hit to its bottom line this year. On Wednesday, Tesla chief executive Elon Musk said U.S. government cuts in support for electric-vehicle makers could lead to a 'few rough quarters,' as his firm reported its worst quarterly sales decline in over a decade.

Iceland Data Center Market to Reach USD 812 Million by 2030
Iceland Data Center Market to Reach USD 812 Million by 2030

Globe and Mail

time4 hours ago

  • Globe and Mail

Iceland Data Center Market to Reach USD 812 Million by 2030

"Iceland Data Center Market Research Report by Arizton" According to Arizton's latest research report, the Iceland data center market to grow at a CAGR of 11.39% during the forecast period 2024-2030. Looking for More Information? Click: Report Scope: MARKET SIZE (INVESTMENT): USD 812 Million (2030) MARKET SIZE (AREA): 208. Thousand Sq. Feet (2030) MARKET SIZE (POWER CAPACITY): 52 MW (2030) CAGR - INVESTMENT (2024-2030): 11.39% COLOCATION MARKET SIZE (REVENUE): USD 397 Million (2030) HISTORIC YEAR: 2021-2023 BASE YEAR: 2024 2025-2030 Iceland Data Center Market Outlook: Green Infrastructure and Emerging Investment Hubs Iceland data center market, contributing nearly 10% of Nordic investments and over 5% of national GDP, is projected to reach USD 812 million by 2025, driven by rising demand for sustainable digital infrastructure. Operators benefit from Iceland's naturally cool climate and fully renewable energy supply, a balanced mix of hydropower and geothermal, which deliver excellent energy efficiency and cost advantages. Strategic policy measures, including district heating integration, circular economy practices, and expanded subsea cable capacity, further enhance Iceland's competitiveness as a low-latency hub connecting Europe and North America. While Reykjavik leads development, secondary locations such as Keflavik, Blönduós, and Akureyri are gaining traction among colocation and cloud service providers seeking scalable, green capacity in a stable regulatory environment Iceland Strengthens Data Center Market with AI-Ready, Low-Carbon Infrastructure Iceland's data center sector is rapidly evolving with advanced AI and automation to boost operational efficiency and meet growing demand for high-performance computing (HPC) and cloud services. Emerging technologies such as AI-driven cooling, dynamic workload management, and intelligent energy optimization are becoming standard as digital transformation accelerates. Backed by supportive government policies, green energy, and international partnerships, Iceland is positioning itself as a leading AI-ready hub in the Nordics. As hyperscale operators and machine learning providers diversify HPC infrastructure globally, Iceland offers resilient, low-carbon capacity for high-density, high-bandwidth workloads. Recent developments, including DataCrunch's USD 13 million funding round to scale AI cloud resources with cutting-edge NVIDIA GPU clusters, underscore Iceland's rising appeal for next-generation digital investments and sustainable HPC expansion Key Highlights: Iceland data center growth is supported by reliable green energy, strong inland and subsea cable links, and a stable regulatory framework. Reykjavik leads as the main hub for advanced data centers and cloud regions, with land prices ranging from USD 4,500–7,000 per sq m (Jan 2025). Northern regions like Akureyri offer lower setup costs and quality infrastructure for expansion. As an EEA and WTO member with over 50 double tax treaties, Iceland provides tariff-free EU access and competitive corporate tax rates. AI adoption could add up to USD 11.8 billion to Iceland's economy by 2029. Operators achieve top-tier energy efficiency with PUE ratios between 1.1 and 1.2, outperforming the global average. Iceland Expanding 5G and Edge Infrastructure Positions It as a Nordic Digital Hub Iceland is steadily reinforcing its position as a Nordic digital hub by expanding its 5G network and edge infrastructure to enable advanced applications in smart manufacturing, connected cities, and cloud services. Leading operators Nova, Síminn, and Vodafone plan to achieve 90% nationwide 5G coverage by early 2025 while retiring legacy 2G and 3G networks by year-end. With a global ranking of 6th for overall network performance (Opensignal, Q1 2025) and gigabit broadband adoption well above the OECD average, Iceland pairs robust connectivity with abundant renewable energy. International players such as Internet Initiative Japan (IIJ) are already piloting renewable-powered micro data centers to strengthen edge capabilities, further positioning Iceland as a sustainable, low-latency base for next-generation digital growth across the Nordics. The segmentation includes: IT Infrastructure Server Infrastructure Storage Infrastructure Network Infrastructure Electrical Infrastructure UPS Systems Generators Switches & Switchgears PDUs Other Electrical Infrastructure Mechanical Infrastructure Cooling Systems Rack Cabinets Other Mechanical Infrastructure Cooling Systems CRAC and CRAH Chillers Cooling Towers, Condensers, and Dry Coolers Other Cooling Units General Construction Core & Shell Development Installation & commissioning Services Building & Engineering Design Fire Detection & Suppression Systems Physical Security Data Center Infrastructure Management (DCIM) Tier Standard Tier I & Tier II Tier III Tier IV Vendor Landscape IT Infrastructure Providers Broadcom Cisco Dell Technologies Hewlett-Packard Enterprise Huawei Technologies Hitachi Vantara IBM Lenovo NetApp Data Center Construction Contractors & Sub-Contractors AVH Blikk & Taekni COWI Perago Bygg Rafeyri Raftakn Support Infrastructure Providers Alfa Laval Carrier Eaton Legrand Schneider Electric Socomec STULZ Vertiv Data Center Investors North Borealis Data Center Verne Other Related Reports that Might be of Your Business Requirement Germany Data Center Market - Investment Analysis & Growth Opportunities 2025-2030 Ireland Data Center Market - Investment Analysis & Growth Opportunities 2025-2030 Key Questions Answered in the Report: How big is the Iceland data center market? How much MW of power capacity will be added across Iceland during 2025-2030? What is the growth rate of the Iceland data center market? What factors are driving the Iceland data center market? What's Included in the Iceland Data Center Market Report? This research provides a complete view of Iceland's data center market, covering market size, colocation revenue, installed power capacity, and detailed investment insights by city and facility. It offers an in-depth analysis of 8 existing and 2 upcoming third-party sites across 4+ key locations, with forecasts to 2030. The report breaks down investments by IT, power, cooling, and construction segments, highlights trends, growth opportunities, and market challenges, and profiles leading infrastructure providers and investors. Supported by a clear, transparent methodology, this study helps industry stakeholders make informed, strategic decisions in Iceland's expanding digital infrastructure landscape. Why Arizton? 100% Customer Satisfaction 24x7 availability – we are always there when you need us 200+ Fortune 500 Companies trust Arizton's report 80% of our reports are exclusive and first in the industry 100% more data and analysis 1500+ reports published till date Post-Purchase Benefit 1hr of free analyst discussion 10% off on customization About Us: Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services. We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts. Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store