Taiwan Semiconductor Manufacturing Co. (TSMC) reported a remarkable revenue of 467.58 billion new Taiwan dollars ($14.5 billion) for July, marking a 44.7% increase year-on-year. This surge is attributed to the rising demand for AI-related chips, as major tech firms like Nvidia and Google continue to invest heavily in AI infrastructure.
Analysts, including Ben Barringer from Quilter Cheviot, noted that TSMC's performance exceeds its guidance of 40% revenue growth for the year, alleviating some pressure for the upcoming months. However, Barringer cautioned that demand in the semiconductor sector can fluctuate rapidly, advising investors to be cautious about interpreting monthly figures.
TSMC's second-quarter earnings indicated that high-performance computing, which includes AI chip sales, constituted 66% of its revenues. The company remains optimistic, projecting a revenue increase of over 40% in U.S. dollar terms by 2026 and raising its capital expenditure forecast to between $60 billion and $64 billion for the year.
Despite recent sell-offs in semiconductor stocks, the PHLX Semiconductor index is still up 72% year-to-date, with TSMC's shares rising 50% this year, reflecting the robust demand for AI-related products