Upgrading TSMC On Management Confidence Despite Tariff Uncertainty

  • TSMC's Q1 2025 earnings beat expectations, with EPS at $2.12 and revenue at $25.53B, but the stock moved only 0.05%. Management's robust Q2 revenue forecast and commitment to CapEx suggest confidence in long-term growth despite tariff uncertainties. AI revenue is expected to double in 2025, with a mid-40s percentage CAGR over the next five years, highlighting strong market demand.