Sales of the largest chip maker up almost 50% per month

Taiwanese semiconductor manufacturer TSMC increased its revenue by 45% in July compared to the same month of last year. The result indicates sustained high demand for artificial intelligence equipment despite fluctuations in the technology market.

The company's monthly revenue, which produces chips for Nvidia, Apple, and other tech corporations, reached TWD 467.58 billion, or approximately $14.5 billion.

Analysts expect that TSMC's sales will grow by an average of 46.8% year-on-year at the end of the current quarter.

In July, the company raised its revenue and investment forecasts for 2026. TSMC expects that the rapid growth in demand for chips for artificial intelligence systems will continue in 2027 and beyond.

The company's capital expenditures this year may reach a record $60-64 billion. The funds will be allocated to the construction and expansion of facilities, equipment procurement, and increased production of advanced semiconductors.

According to TSMC's forecast, annual revenue in dollar terms will increase by slightly more than 40%. The company remains a key manufacturer of processors for Nvidia, AMD, and Broadcom, used in servers and data centers.

Meanwhile, investors continue to assess the risk of excess data center capacity and question whether the multi-trillion investments in artificial intelligence will yield the expected return. TSMC shares have lost about 5% compared to their peak at the end of June, but since the beginning of the year they are still up more than 50%.

Alphabet, Meta, Microsoft, and Amazon – the four largest participants in the race for AI infrastructure – have announced investment commitments totaling nearly $2.4 trillion over the coming years. This supports long-term demand for TSMC's processors and production capacities.

Based on materials from: Bloomberg