Silicon Strongholds: TSMC & ASML Keep the AI Arms Race Fueled

Taking a Look at ASML (ASML) & Taiwan Semiconductor (TSM) Q2 2025 Earnings Results.

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This week, we covered quarterly results from two of the most important semiconductor firms in the world.

ASML (ASML): Precision Under Pressure

ASML delivered a strong Q2 2025, posting record revenue of $8.3B and maintaining margins above 53%. High-NA EUV tools began shipping, while upgrade services and installed base management continued to boost profitability. Despite FX and product mix headwinds, guidance remains intact — and our IVT model shows the stock is modestly undervalued at current levels. We’ve maintained our base-case fair value range (with a slight upward revision) and continue to view ASML as a long-term core holding at the frontier of advanced lithography.

Taiwan Semiconductor (TSMC): Silicon Supremacy

TSMC crushed expectations in Q2 2025, with $30.1B in revenue (+44% YoY) and net income of $12.8B. AI and HPC demand drove 74% of wafer revenue from 7nm and below. Despite FX headwinds and fab ramp dilution, gross margin held near 59% — and management raised full-year guidance to +30% revenue growth. We’ve revised our IVT model upward, raising fair value to the $190s per ADR. With leadership at the 3nm and 5nm nodes, and 2nm taping out soon, we see TSMC as an AI arms dealer with global scale.

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