TSMC Sales Rise 45% as Demand for AI Hardware Stays Strong

Taiwan Semiconductor Manufacturing Co. reported a 45% rise in its monthly sales, a sign of sustained demand for AI hardware in the face of market volatility.

Revenue at the go-to chipmaker for Nvidia Corp. and Apple Inc. reached NT$467.58 billion ($14.5 billion) in July. Analysts on average are estimating a 46.8% increase in sales for the current quarter.

Last month, TSMC raised its spending and revenue projections for the year, reflecting confidence that torrid growth in demand for chips powering AI development would extend into 2027 and beyond. TSMC now expects its capital expenditure to reach a record level of $60 billion to $64 billion in 2026 and forecasts its full-year sales to grow slightly above 40% in US dollar terms.

Read more: TSMC Hikes Sales, Spending Outlook to Catch AI ‘Megatrend’

Tech valuations stalled in July, hit by persistent concerns around data center overcapacity and questions over whether the trillions of dollars in AI-related spending will deliver meaningful returns.

TSMC shares are down around 5% from a peak in late June. They’re still up more than 50% since the beginning of this year.

Alphabet Inc., Meta Platforms Inc., Microsoft Corp. and Amazon.com Inc. — the four largest players in the data center race — have pledged nearly $2.4 trillion in AI-related commitments over the coming years, pointing to massive ongoing investment in AI infrastructure.