The logo of Japanese entertainment and electronics giant Sony is displayed at the company’s headquarters in Tokyo on May 14, 2025.

Kazuhiro Nogi | Afp | Getty Images

Sony on Thursday reported a rise in operating profit that beat expectations, supported by favorable foreign exchange rates despite surging memory chip costs. 

Here are Sony’s December quarter results compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate: 

• Revenue: 3.71 trillion Japanese yen ($23.68 billion) vs. 3.69 trillion yen
• Operating profit: 515 billion yen vs. 468.9 billion yen

Operating profit jumped 22% from a year earlier, rebounding from a year-on-year decline in the previous quarter. Revenue was up a modest 1% over the same period.

The Japanese technology and entertainment giant raised its full-year outlook and now expects operating profit of 1.54 trillion yen, an increase of 110 billion yen, or 8% from its previous forecast.

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Sony also raised its annual revenue projection by 300 billion yen to 12.3 trillion yen, or 3%, while keeping its estimated losses from U.S. tariffs at 50 billion yen.

Meanwhile, the board approved increasing the share buyback program to 150 billion yen from 100 billion yen, to run through May 2026.

Sales in the game and network services division, which houses its popular PlayStation home console brand and represents Sony’s top revenue driver, totaled 1.613 trillion yen, down 68.7 billion yen from a year earlier.

While the unit has benefited from a shift to digital game purchases and growth in the PlayStation Plus subscription service in recent quarters, hardware shipment growth has remained more subdued.

Sony’s hardware business is expected to face headwinds this year from rising component costs.

PlayStation consoles rely on a type of dynamic random access memory, or DRAM, chips, which are in short supply as demand from artificial intelligence and data center operators increases.

As a result, contract prices for conventional DRAM chips are projected to rise 90% to 95% in the current quarter from the previous three months, according to a report from market researcher TrendForce on Monday.

In an earnings call on Thursday, a Sony executive said the company aims to blunt the impact of higher memory costs by focusing on monetizing its current install base and further expanding its software and network service revenue.

Offsetting some of the pressure on the gaming business were stronger results from its music and imaging segments.

Revenue in Sony’s music business rose 12.6% from a year earlier in the December quarter, supported by growth in live events, merchandising and streaming services.

Meanwhile, its imaging and sensing solutions business grew by over 20% in revenue. The unit specializes in the development and manufacturing of semiconductor-based imaging and sensing technologies, including components used in smartphones.

Sony said that while the ongoing memory shortage is expected to impact the smartphone industry, its image sensors are primarily for the high-end market, which it expects to be less affected.

Shares of Sony reversed gains after the earnings release and ended the trading day flat on Thursday.

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TSMC offices in San Jose, California, on April 18, 2024.

Bloomberg | Bloomberg | Getty Images

Taiwan Semiconductor Manufacturing Company on Thursday reported a 35% increase in fourth-quarter profit, beating estimates and hitting a fresh record as demand for artificial intelligence chips remained strong.

Here are the company’s results versus LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:

• Revenue: 1.046 trillion new Taiwan dollars ($33.73 billion), vs. NT$1.034 trillion expected
• Net income: NT$505.74 billion, vs. NT$478.37 billion expected

The world’s largest contract chipmaker has now posted year-over-year profit growth for eight consecutive quarters.

Meanwhile, TSMC’s revenue in the December quarter rose by 20.5% from a year ago to surpass NT$1 trillion, also beating forecasts.

TSMC, Asia’s largest technology company by market capitalization, has benefited greatly from the proliferation of artificial intelligence, producing advanced AI processors for clients such as Nvidia and AMD. 

The company’s high-performance computing division, which includes artificial intelligence and 5G applications, made up the majority of sales in the October-December quarter.

TSMC said advanced chips measuring 7-nanometer or smaller made up 77% of total wafer revenue during the quarter. For full-year 2025, those chips made up 74% of revenue, up from 69% in 2024.

In semiconductor technology, smaller nanometer sizes indicate more compact transistor designs, allowing faster processing speeds and greater energy efficiency.

“The demand for AI remains very strong, driving overall chip demand across the entire server industry,” Counterpoint Research senior analyst Jake Lai told CNBC, predicting that 2026 will be another “breakout year” for AI server demand. 

“With TSMC’s ongoing 2nm capacity expansion and new production contributing to revenue, along with continuous expansion of advanced packaging… TSMC is expected to maintain strong performance in 2026,” Lai said. 

However, he added that chip demand tied to consumer electronics such as smartphones and PCs could be affected by the ongoing memory shortage and price hikes.

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Mary Barra, CEO of General Motors, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

DETROIT — General Motors is on pace to be the top U.S.-traded automaker stock of 2025, as shares of GM are having their best year since the Detroit company’s reemergence from bankruptcy in 2009.

GM stock is up over 55% to a record of more than $80 per share, as of Friday’s close, topping the company’s previous annual increase of 48.3% last year. That includes a nearly 13% rise so far in December, adding to five consecutive months of share gains, according to FactSet.

Several factors have been driving the share increase. But GM CEO Mary Barra and other executives have contended for years that the automaker’s stock has been significantly undervalued given its consistent earnings performance.

“Great vehicles, innovative technology, a rewarding customer experience, along with strong financial results, will continue to set GM apart in an increasingly competitive landscape,” Barra said during the company’s last quarterly earnings call in October.

Amid the stock’s run-up, Barra has significantly cut her position in the company. She has exercised options or sold roughly 1.8 million shares this year, valued at more than $73 million, according to public filings confirmed by GM.

As of the last public filing in September, Barra still owned more than 433,500 shares valued at over $35 million, with much of her annual awards granted in options and stock.

GM’s stock performance compares with a 17% yearly increase for Tesla as of Friday’s close, a 34% jump for Ford Motor and a 15% loss for Chrysler parent Stellantis. Other U.S.-traded automakers such as Honda Motor and Toyota Motor have had smaller annual gains.

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GM ‘s most recent quarterly earnings were a major catalyst for Wall Street analyst bullishness that led to reratings and price target increases after the third quarter.

The automaker’s quarterly adjusted earnings per share have topped Wall Street estimates every quarter except the second quarter of 2022 over the past five years, according to average expectations of analysts compiled by FactSet.

Wall Street analysts overall have cited GM’s cash generation, earnings resilience and track record in delivering shareholder returns, including stock buybacks, as reasons for their optimism. The automaker also is expected to greatly benefit from regulation changes under the Trump administration, despite ongoing tariffs.

UBS recently increased its 12-month price target on GM stock by 14% to $97 per share, while naming the company its top autos pick heading into 2026. Morgan Stanley earlier this month also upgraded GM to overweight, with a $90 per share price target.

“In our view, General Motors leads the D3 in the North America and Global market with steady unit sales growth, [average transaction price] growth, disciplined incentive spend, and inventory management. This has resulted in better [earnings before interest and taxes] margin and return metrics than peers,” Morgan Stanley analyst Andrew Percoco said in a Dec. 7 investor note.

GM stock has cumulatively been in the black on a weekly basis since June. The largest weekly gain of 19.3% occurred when the automaker reported its third-quarter earnings on Oct. 21. Those results beat Wall Street’s expectations and the company raised its annual guidance, adding that next year’s earnings are expected to be better than 2025’s.

GM stock’s has also seen a boost from some external factors. The Trump administration has loosened U.S. fuel economy and emissions standards, removed related penalties that were imposed under the Biden administration, and renegotiated its trade deal with South Korea, a major manufacturing hub for GM. Meanwhile, the industry has been seeing a slowdown in less profitable EV sales.

“GM is effectively a regional (NA) [automaker] and we believe they are well positioned to benefit from the relaxed US regulatory environment (emissions and fuel economy),” UBS analyst Joseph Spak said in a Dec. 15 investor note raising the per share price.

GM CFO Paul Jacobson earlier this month said the company will continue stock buybacks.

“As long as the stock remains as undervalued as it is, the priority is to buy back shares. And I think you’ll continue to see that from us going forward,” he said during a UBS investor conference.

GM is rated overweight with an $80.86 target price, according to analyst averages compiled by FactSet.

— CNBC’s Michael Bloom contributed to this report.

Correction: Lucid shares are down for the year. An earlier version misstated their move.

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Though the difference between the two brands’ monthly sales totals is relatively small, the implications of BYD beating out Tesla “are enormous,” says Felipe Munoz, global automotive analyst at JATO Dynamics.

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Despite incurring a higher tariff rate than Tesla, Chinese electric vehicle maker BYD sold more pure battery electric vehicles in Europe for the first time ever last month — a “watershed moment” for the region’s car market, according to a report from JATO Dynamics.

New car registrations data from the automotive intelligence firm shows that BYD’s Europe volumes rose 359% in April from last year as the company continues its global expansion efforts.

Over the same period, Tesla reported yet another monthly drop, with total volumes down 49%, JATO said. That follows protests against CEO Elon Musk and the company in the region. JATO’s data comes from 28 European nations.

BYD’s success in the EU comes despite the economic bloc’s imposition of punitive tariffs on battery EVs made in China last October. The EU attributed the move to unfair trade practices.

The punitive tariffs appeared to be favorable to Tesla, assigning its made-in-China vehicles a 7.8% duty compared with BYD’s 17%. Other Chinese EV makers were given tariffs as high as about 35%. The EU also has a standard 10% car import duty.

Emerging battleground

Felipe Munoz, global automotive analyst at JATO, said the difference between the two EV makers’ April sales was relatively small, but that the implications of BYD beating out Tesla “are enormous.”

JATO added that BYD is also beating well-established European car brands across the region, outselling Fiat and Seat in France, for example.

“This is a watershed moment for Europe’s car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022,” Munoz said.

BYD’s growth comes even before production begins at its new plant in Hungary, which is expected to become the center of European production operations.

“Europe is emerging as a central battleground between BYD and Tesla,” Liz Lee, associate director at technology market research firm Counterpoint Research, told CNBC. She added that the region is expected to experience higher electric vehicle market growth this year than China, which already has high EV penetration.

The tariffs have provided more impetus for Chinese EV makers like BYD to localize manufacturing in the region, according to Lee. Tesla is also reportedly working on plans to expand its manufacturing base in Germany.

JATO’s report said that while tariffs had an initial impact on the sales of Chinese automakers, the companies have mitigated it by expanding and diversifying their European line-ups with the introduction of plug-in hybrids.

“China is not only the world leader in BEVs; its automakers are global leaders in plug-in hybrid vehicles too,” Munoz said. 

Battery EVs run entirely on electricity, while hybrid vehicles combine an electric battery with an internal combustion engine. Hybrid vehicles have not yet been targeted by EU tariffs.

Meanwhile, there has been growing demand in the region’s EV segment, with JATO data showing that registrations of battery EVs and plug-in hybrid electric vehicles are up by 28% and 31%, respectively, despite declines among internal combustion engine vehicles. 

Registrations of all electric vehicles made by Chinese automakers in April rose by 59% year on year, reaching almost 15,300 units in April, the report added.

Ahead of the EU’s tariff decision last year, Rhodium had predicted that tariffs would need to be as high as 55% for the European market to be unattractive for Chinese EV exporters.

In March, it was revealed that Tesla, which only sells pure battery vehicles, fell behind BYD in total annual sales. 

Tesla’s shares have fallen over 10% over the same period amid blowback from Musk’s involvement with the administration of U.S. President Donald Trump. The CEO recently committed to leading Tesla for the next five years. 

BYD shares were up 3.9% in Hong Kong trading on Friday and have surged about 78% year to date.

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An image of a semiconductor wafer at the Taiwan Semiconductor Manufacturing Museum of Innovation in Hsinchu, Taiwan, on Jan. 11, 2022.

I-Hwa Cheng | Bloomberg | Getty Images

Taiwan Semiconductor Manufacturing Company on Thursday reported a 54% hike in net profit, as global chipmakers continue to benefit from demand boosted by AI applications.

The company’s net income was 352.3 billion Taiwanese dollars ($10.1 billion) over the July-September quarter, surpassing an LSEG estimate of $300.2 billion Taiwanese dollars cited by Reuters.

TSMC is the world’s largest producer of advanced chips, serving clients such as Apple and Nvidia.

Net revenue came in at $23.5 billion in the third quarter, up 36% year-on-year, with TSMC’s gross margin rising to 57.8% over July-September, compared with 54.3% in the same period of last year.

Capital expenditure edged higher to $6.4 billion in the third quarter, versus $6.36 billion across the three preceding months.

TSMC’s earnings beat comes the same week as Netherlands-based ASML, which supplies machines to the Taiwanese company, issued a lower-than-expected forecast of net sales, sending shares tumbling.

This breaking news story is being updated.

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