Taiwan Semiconductor Manufacturing Co. posted July revenue of $14.5 billion, up 44.7% from a year earlier, running ahead of its own full-year growth guidance. Equipment suppliers rose on the print, even as the broader chip sector remains below its June peak.
Taiwan Semiconductor Manufacturing Co. reported July revenue of 467.58 billion New Taiwan dollars, or roughly $14.5 billion, up 44.7% from a year earlier. That keeps the world's largest chipmaker ahead of the slightly above 40% revenue growth it has guided for 2026.
AI computing anchors the growth
TSMC makes chips for Nvidia and Google's custom silicon, so its results serve as a proxy for AI infrastructure demand. High-performance computing, where the company books AI chip sales, made up 66% of revenue in the second quarter.
TSMC also raised its 2026 capital-expenditure plan to between $60 billion and $64 billion. According to CNBC: "AI-related demand continues to be extremely robust," TSMC Chairman C.C. Wei said.
TSMC's revenue for January through July totaled roughly $89.11 billion, up 37% from the same period in 2025. Last month the company also posted record second-quarter revenue of $40.2 billion, up 36% from a year earlier.
Equipment makers rally, chip stocks stay under pressure
European semiconductor stocks rose Monday, with ASML up more than 2%, and Infineon and STMicro also trading higher. In the US, ASML led Applied Materials and Lam Research higher after the print.
But the broader sector remains below its June high. The PHLX Semiconductor index is down around 15% from its June high, though it remains about 72% higher for the year. TSMC's own shares are up 50% for the year.
Analysts caution against reading too much into one month
Quilter Cheviot's Ben Barringer said July's print puts TSMC ahead of its full-year guidance, though he cautioned that demand in the semiconductor industry can shift quickly and that monthly figures can jump around. He added that TSMC's continued investment gives some hope the current pace of chip production can hold.
Sources: TSMC, CNBC, Yahoo Finance
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