Breakfast News: TSMC Flags AI Demand

July 17, 2025

Wednesday’s Markets
S&P 500 6,264 (+0.32%)
Nasdaq 20,730 (+0.25%)
Dow 44,255 (+0.53%)
Bitcoin $119,348 (+2.51%)

1. TSMC Raises Forecasts as AI Momentum Grows

I, as an observer, noticed that Taiwan Semiconductor Manufacturing Company (TSM), reporting a robust performance for the second quarter, saw a significant surge of 60.7% in net income, reaching a new peak. The company’s optimistic forecast for the entire year was also elevated, attributable to the sustained momentum in investments within the artificial intelligence (AI) sector.

“TSMC results again ease fears of an AI slowdown.” Billy Leung, investment strategist at Global X ETFs, pointed to the demand outlook, alongside strong profit margins, as reinforcing confidence in the continued buildout of AI.
Increasing projected 2025 sales growth to 30% from mid-20%: Apple (AAPL -0.06%) and Nvidia (NVDA 1.06%) are two large clients, so higher sales growth suggests related tech companies will continue spending to fuel further AI development.

2. Nvidia’s Huang Praises Chinese AI

Jensen Huang, the CEO of Nvidia, has praised DeepSeek and other Chinese AI research firms for their role in aiding the global community. Simultaneously, he emphasizes his efforts to boost sales growth in China by speeding up its recovery process.

“A-plus quality science and A-plus quality engineering.” Huang said that China’s open-source AI models provided a catalyst for global progress, allowing every country to boost its AI capabilities.
Export licenses “to come through very shortly.” Nvidia expects to be able to begin shipments of the H20 processors to China imminently, with Huang admitting that some of what the company had to write off financially will be hard to recover.

3. Trump Refutes Powell Firing Claims

President Donald Trump recently clarified that contrary to previous speculations, he is not currently intending to replace Jerome Powell as Federal Reserve Chair. However, he declined to definitively rule out any future changes. This earlier uncertainty had temporarily led to a dip in the stock market.

“I think it’s highly unlikely, unless he has to leave for fraud.” The move in the stock market, correlated with a spike in U.S. Treasury yields and a fall in the U.S. dollar, came after the notion to fire Powell was reportedly brought up in a meeting with congressional Republicans.
“We think Trump is testing the markets to see whether he can fire Powell.” Anna Wong, chief economist at Bloomberg Economics, feels the sharp reaction to the report caused the president to backtrack temporarily, but expects things to escalate.

4. Earnings to Watch Today

Netflix is set to release its quarterly financial results following the market close, drawing attention from investors who are interested in the platform’s expanding range of entertainment options and growing user engagement patterns.

Watching for increased client activity: Interactive Brokers (IBKR) is expected to post earnings after the market closes, with analysts projecting a 13.8% growth in revenue thanks to market volatility.
Outperforming the S&P 500 by 53% this year: GE Aerospace (GE -2.22%) is hoping to build on the strong previous quarter when results come out before the opening bell. Any easing of recent supply chain problems will be cheered.

5. Your Take

Whenever I delve into the world of investments, I always take a company’s culture into account – reviews on sites like Glassdoor and media coverage about their workplace practices play a significant role in my decision-making process. This is because a strong, positive company culture can lead to increased employee satisfaction, productivity, and ultimately, financial success for the business. On the other hand, a toxic or problematic culture could lead to high turnover rates, negative publicity, and poor long-term performance. So, I believe it’s crucial to consider this aspect when investing in a company. However, everyone has their own investment strategies, so discussing with friends, family, or even fellow investors can help you understand different perspectives and make informed decisions.

2025-07-18 01:27