Revenue for the leading chip manufacturer for Nvidia and Apple rose 45% in July

TSMC, the world's largest contract chip manufacturer, reported that its sales in July rose 45% year-over-year. This indicates steady demand for artificial intelligence equipment even amid market volatility, Bloomberg notes.

Revenue for the leading chipmaker for Nvidia and Apple jumped 45% last month, reaching 467.58 billion New Taiwan dollars ($14.5 billion). Total revenue from January through July exceeded $89.1 billion, a 37% increase compared to the same period last year.

According to Bloomberg, analysts are forecasting an average 46.8% increase in TSMC's sales for the current quarter.

Investors will closely scrutinize the expenses of major tech companies and the return on their investments, as the sector continues to channel large amounts of capital into developing AI infrastructure, including the development and procurement of semiconductors, according to CNBC. TSMC manufactures chips for a wide range of customers, including Nvidia’s graphics processors and Google’s specialized processors, so the Taiwanese company’s sales figures serve as an important indicator of demand in the tech sector.

“TSMC is currently targeting 40% revenue growth for the full year, and July’s figures are outperforming that target. This is a significant achievement that underscores that demand remains strong for now. This takes some pressure off August and September, as those months no longer need to deliver such aggressive results,” Ben Barringer, head of technology research at Quilter Cheviot, told CNBC.

The analyst added that demand in the semiconductor industry can change rapidly, which is why monthly figures are subject to fluctuations and should not be given too much weight. At the same time, he noted that TSMC continues to expand through additional investments, which gives reason to expect that current production levels will be maintained.

At the close of trading in Taiwan on August 10, TSMC shares rose 0.4%. Since the beginning of the year, they have already gained more than 50%. At the opening of trading in New York, the company’s depositary receipts rose about 0.2%.

According to MarketScreener, 34 of the 35 analysts who cover TSMC stock recommend buying it, and only one advises holding.

In its second-quarter results, TSMC reported record profits and profitability, but company executives indicated that these figures may have already peaked, according to Bloomberg.

At the same time, along with the release of its report, TSMC also raised its annual forecasts for expenses and revenue. The company now expects its capital expenditures to reach a record $60–64 billion in 2026, with sales growth slightly exceeding 40% in dollar terms.

This article was AI-translated and verified by a human editor