TSMC posts record quarterly profit on AI demand, but wary about tariffs

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TSMC, the world's main producer of advanced AI chips, posted record, forecast-beating quarterly profit on Thursday but warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter.

Saying demand for artificial intelligence was getting stronger and stronger, Taiwan Semiconductor Manufacturing Co predicted another leap in sales for the third quarter and hiked its revenue outlook for the full year.

It also noted that key client Nvidia had recently been allowed by the U.S. government to resume sales to China of its H20 AI chip.

"China is a big market, and my customer can continue to supply the chip to the big market, and it's very positive news for them and in return it's very positive news for TSMC," Chief Executive C.C. Wei told a press conference. Yahoo Finance reports.

🤖 Zuckerberg is pouring billions into plans for 'personal superintelligence': Meta CEO Mark Zuckerberg is plowing billions into his company’s AI expansion efforts with the goal of developing so-called superintelligence, or AI that can surpass human capabilities.

In a Threads post on Monday, Zuckerberg revealed plans to spend hundreds of billions of dollars building several massive AI data centers across the US, including one that will come online as soon as next year.

Another data center, called Hyperion, will eventually scale up to support up to 5 gigawatts, or 5 billion watts, of capacity. A gigawatt of electricity can power roughly 800,000 homes. Yahoo Finance reports.

📊 Nasdaq futures muted amid Trump-Powell drama with retail sales, Netflix on deck: US stock futures made small moves early Thursday, as Wall Street navigated a fresh round of drama over whether President Trump would attempt to fire Fed Chair Jerome Powell. Investors also braced for another key economic pulse check and for Netflix to kick off this season's Big Tech earnings reports.

Dow Jones Industrial Average futures slipped 0.1%, while those on the S&P 500 hovered just above the flatline. Nasdaq 100 futures tipped up 0.1% on the heels of a record-setting session for tech stocks. Yahoo Finance reports.

✈️ GE Aerospace lifts 2025 profit view on rising demand for fixing older jets: GE Aerospace raised its 2025 profit forecast on Thursday, buoyed by strong demand for aftermarket maintenance services as airlines hold on to older jets longer due to persistent aircraft delivery delays. Shares of the jet-engine maker rose 4% in premarket trading.

Production delays at Boeing and Airbus are pushing back aircraft deliveries, forcing airlines to operate older jets for longer periods to meet rising travel demand. Reuters reports.

🥤 PepsiCo expects smaller drop in annual profit on US soda demand, weaker dollar: PepsiCo said on Thursday that it was expecting a smaller drop in annual profit, helped by a rebound in demand for its energy drinks and healthier soda brands in the United States as well as benefits from favorable foreign exchange rates.

The Gatorade maker's shares were up 1.6% in premarket trading after the company reported better-than-expected results for the second quarter. The stock is down about 11% this year. Reuters reports.

☕ Starbucks downgraded to underperform as broker sees too much froth in the stock price: A Starbucks rally has run too far, says one brokerage that slapped an underperform rating on the coffee retailer.

Since its last quarterly earnings release Starbucks’ share price has outperformed the S&P 500 with a 12.5% rally, beating the index by three percentage points.

For the Jefferies research team, led by analyst Andy Barish, the stock is running way ahead of expectations, though, and they have downgraded their recommendation to an underperform from hold. MarketWatch reports.

🎞️ Netflix earnings on deck as investors weigh valuation, content strength: Netflix is set to report second quarter earnings after the bell on Thursday. Shares have soared about 40% since the start of the year, with the stock's valuation a top debate on Wall Street as the streamer doubles down on live events and sports content.

Here's what Wall Street expects for the second quarter, according to Bloomberg consensus estimates.

• Revenue: $11.06 billion versus $9.56 billion last year; Netflix's guidance: $11.04 billion
• Earnings per share: $7.09 versus $4.88 last year; Netflix's guidance: $7.03

Investors will be focused on metrics other than subscriber numbers, which the company stopped reporting as it focuses on driving greater engagement and top-line growth. Yahoo Finance reports.

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM Eastern Time)
Benzinga reports.

1) $XXII: 22nd Century Group

Total gain: +171.61%

2) $VLCN: Volcon

Total gain: +120.39%

3) $SRPT: Sarepta Therapeutic

sTotal gain: +31.44%

4) $BGLC: BioNexus Gene Lab

Total gain: +31.29%

5) $WINT: Windtree Therapeutics

Total gain: +22.22%

The closing price of the top three market percent gainers trading near or above $3 on July 16.
Benzinga reports.

*All pricing and percent gains are based on regular market trading hours from 9:30am to 4:00pm Eastern Time

1) $YHC: LQR House

Total gain: +165.06%

The stock appeared to be moving on no notable news.

2) $GAME: GameSquare Holdings

Total gain: +55.04%

The company announced that it is commencing an underwritten public offering of its common stock. The offering is subject to market conditions, and there can be no assurance as to whether or when it will be completed, or as to its actualsize or terms. Benzinga reports.

3) $SRM: SRM Entertainment

Total gain: +50.29%

The company announced that it has changed its corporate name to Tron Inc. to align with its major transformation into a TRON ("TRX") treasury strategy company. Benzinga reports.

*Estimate and Actual numbers represent Earnings Per Share in US Dollars


PEP: PepsiCo
2Q 2025

Before Market Open
Estimate: 2.030
Actual: 2.120

NFLX: Netflix
2Q 2025

After Market Close
Estimate: 7.060
Actual: N/A

TSM: Taiwan Semiconductor
3Q 2025

Before Market Open
Estimate: 2.370
Actual: 2.470

Time (ET) | Report | Period

8:30 am - Initial jobless claims - July 5

8:30 am - U.S. retail sales - June

“The markets are never wrong, opinions are.”

- Jesse Livermore

Sourced in: “Reminiscences of a Stock Operator”, by Jesse Livermore, published in 1923.