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TSMC July revenue jumps 45%, but chip stocks stay under pressure
Taiwan Semiconductor reported July sales of NT$467.6 billion, up 45% year over year, and raised 2026 capital spending guidance to a record $60.0 billion to $64.0 billion.
Taiwan Semiconductor Manufacturing Company, or TSMC, reported July revenue of NT$467.58 billion, about $14.5 billion, up 45% from a year earlier, underscoring Chairman C.C. Wei's view that AI-related demand is extremely robust, according to Yahoo Finance.
The company also topped expectations relative to its own recently raised full-year guidance, with July growth already exceeding slightly above 40% dollar growth, even as investors have kept selling off parts of the semiconductor sector over concerns about AI overspending.
TSMC said high-performance computing, the segment tied to AI chip production for customers including Nvidia and Google, accounted for 66% of second-quarter revenue, reinforcing that AI has become the core business rather than a side bet.
In addition, TSMC raised its 2026 capital spending outlook to a record $60.0 billion to $64.0 billion and was reported to be in discussions with Sony on a Japan image sensor plant targeting 2029 production, as the broader PHLX Semiconductor index remains about 15% below its June high.