By Nauman Khan
Publication Date: 2026-08-10 12:18:00
This article first appeared on GuruFocus.
Taiwan Semiconductor Manufacturing (TSM) posted a 44.7% increase in July revenue.
TSMC generated NT$467.58 billion ($14.5 billion) in July sales, up 5.6% from June. Revenue for the first seven months of the year reached NT$2.87 trillion, representing a 37% increase from the same period last year.
The results come after TSMC delivered record second-quarter profit and margins, although management indicated profitability could moderate from those levels. The company has also raised its 2026 revenue growth forecast to about 40% and increased its planned capital spending as it prepares for continued AI-related demand.
TSMC is also developing its COUPE optics business, which is aimed at supporting connectivity inside AI data centers. The technology has already drawn interest from Broadcom (NASDAQ:AVGO) and Nvidia (NASDAQ:NVDA), potentially giving TSMC another avenue to benefit from expanding AI infrastructure spending.
Analysts expect TSMC’s quarterly sales to rise 46.8% on average, suggesting demand could remain elevated through the remainder of the year.
