ETFs to Capitalize on TSM's Impressive Q2 Earnings

Core Insights - Taiwan Semiconductor Manufacturing (TSM) reported strong second-quarter 2025 results driven by AI and HPC demand, surpassing revenue and earnings estimates [1][3] - The company expects continued revenue growth in the third quarter and for the full year, supported by advanced technology demand [5] Financial Performance - TSM reported earnings per ADR of $2.47, exceeding the Zacks Consensus Estimate of $2.37, and reflecting a 60.7% year-over-year increase [3] - Revenues increased by 38.6% year-over-year to $30.07 billion, slightly above the consensus estimate of $30.04 billion [3] - The high-performance computing division contributed 60% of total revenues, highlighting the importance of AI and 5G applications [3] Technology and Market Position - TSMC benefits from the megatrend towards AI, producing advanced processors using 3-nanometer and 5-nanometer technologies for major clients like NVIDIA and Apple [4] - The revenue breakdown for the second quarter included 36% from 5-nanometer wafers, 24% from 3-nanometer wafers, and 14% from 7-nanometer wafers [4] Future Outlook - For Q3 2025, TSM expects revenues between $31.8 billion and $33 billion, with the Zacks Consensus Estimate at $30.69 billion [5] - The company anticipates a full-year revenue increase of around 30% in U.S. dollar terms, driven by AI growth and demand for advanced technologies [5] Investment Opportunities - Investors can consider ETFs with significant allocations to TSM, including SP Funds S&P World ex-US ETF, SP Funds S&P Global Technology ETF, VanEck Vectors Semiconductor ETF, Matthews Emerging Markets ex China Active ETF, and Global X Emerging Markets ex-China ETF [2][6][7][8][10][11]