TSMC July Revenue Rises 44.7% to Record High as AI Chip Demand Remains Strong
TSMC reported a record July revenue of NT$467.58 billion, up 44.7% year-on-year, driven by robust AI chip and high-performance computing demand. This marks the seventh consecutive month of strong growth, with cumulative H1 revenue reaching NT$2.87 trillion. Management raised full-year guidance, projecting over 40% USD revenue growth and $60-64 billion in 2026 capex. Despite market concerns regarding AI investment returns and data center overcapacity causing a recent stock pullback, TSMC's YTD gain remains over 50%, supported by sustained Big Tech infrastructure spending.
TradingKey - TSMC ( TSM )'s latest monthly revenue data shows that despite the heating up of market discussions regarding AI investment returns and data center capacity, demand for AI chips remains robust, and the company's revenue performance has continued its growth trend from this year.
TSMC's consolidated revenue for July was NT$467.58 billion (approximately $14.5 billion), representing a year-on-year increase of 44.7% and a 5.6% increase from June. Cumulative revenue for the first seven months of this year reached NT$2.87 trillion. July's revenue not only maintained a high growth rate but also set a new monthly record once again, showing that orders related to advanced process technologies and high-performance computing (HPC) remain at a high level.
Source: TSMC
Looking at recent performance, TSMC's revenue growth has been primarily driven by AI and high-performance computing demand. In June, the company's revenue reached NT$442.68 billion, up 6.2% month-on-month and 67.9% year-on-year; while May revenue was NT$416.975 billion. Maintaining high levels for several consecutive months has made TSMC's revenue performance this year significantly stronger than in the same period of previous years.
TSMC previously raised its full-year earnings and capital expenditure guidance at its investor conference. The company expects capital expenditure in 2026 to reach $60 billion to $64 billion, and projects full-year USD revenue growth of slightly over 40%.
Chairman C.C. Wei previously estimated that third-quarter USD revenue would be between $44.6 billion and $45.8 billion. Based on an exchange rate of NT$32 per USD, this corresponds to third-quarter revenue of approximately NT$1.43 trillion to NT$1.47 trillion.
The company's management previously viewed AI as an important long-term trend driving the development of the semiconductor industry, believing that relevant demand is expected to extend to 2027 and beyond. Meanwhile, Alphabet ( GOOGL ), Meta ( META ), Microsoft ( MSFT) and Amazon ( AMZN) and other Big Tech companies still plan to invest heavily in building AI infrastructure over the next few years, which also provides a relatively stable demand base for advanced chipmakers.
However, the market's outlook on the AI supply chain is not entirely optimistic. As Big Tech companies continue to increase their AI capital expenditures, investors are starting to worry about potential overcapacity in data center construction, and whether the massive AI investments will eventually translate into sufficient revenue and profit. The overall pressure on tech valuations in July also reflected that the market is reassessing the return cycle of AI investments.
TSMC's stock price was also affected by this sentiment, pulling back by about 5% from its late-June high. Nevertheless, on a year-to-date basis, TSMC's stock price has still accumulated a gain of over 50%, and its overall performance remains quite strong.
Source: TradingView
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