AI hardware demand proves "resilient"! TSMC's July revenue surged 45%, market volatility does not change its resilience
Taiwan Semiconductor announced that its revenue in July reached NT$ 467.58 billion, a year-on-year increase of 45%, confirming strong demand for AI hardware. Despite market volatility leading to a short-term pullback in stock prices, the company raised its full-year guidance, expecting record capital expenditures in 2026, and is optimistic about AI demand continuing until after 2027. The four major tech giants have committed to investing nearly $2.4 trillion in the AI sector, indicating that the wave of infrastructure investment is still in its early stages
According to the Zhitong Finance APP, TSMC (TSM.US), the global leader in chip foundry, recently announced its revenue data for July, showing that demand for AI hardware remains strong and has not been significantly impacted by recent market fluctuations. As a core chip supplier for NVIDIA (NVDA.US) and Apple (AAPL.US), TSMC's revenue for the month reached NT$467.58 billion (approximately US$14.5 billion), a year-on-year increase of 45%. Analysts expect TSMC's revenue growth for this quarter to be around 46.8%.
Last month, TSMC raised its full-year capital expenditure and revenue guidance, demonstrating its confidence that the rapid growth in demand for AI chips will continue until 2027 and beyond. The company currently expects capital expenditures to reach a record US$60 billion to US$64 billion in 2026, with full-year revenue (in USD) expected to increase slightly above 40%.
Due to concerns about oversupply in data center capacity and ongoing worries about whether the multi-trillion-dollar investments in the AI sector will yield substantial returns, the technology sector's valuations faced downward pressure in July. TSMC's stock price has retreated about 5% from its peak in late June, but it has still risen over 50% year-to-date.
Meanwhile, the four major players in the data center race—Alphabet (GOOGL.US), Meta (META.US), Microsoft (MSFT.US), and Amazon (AMZN.US)—have committed to investing nearly US$2.4 trillion in AI-related fields over the next few years, indicating that the wave of investment in AI infrastructure is still in its early stages
