TSMC's July Revenue Soars 45% Thanks to AI

TSMC, the world's largest contract chipmaker, reported that its revenue for July increased 45% year-over-year to $14.5 billion, confirming the trend of high growth. Analysts on average expect revenue for the full quarter to grow by 46.8%, which would require slightly higher growth rates in August and September. TSMC benefits from seasonal preparation of consumer electronics, as Apple traditionally launches new iPhones in September and is one of TSMC's largest clients, so the company is already ramping up chip production for the next iPhone generation. TSMC plans to spend a record $64 billion on expanding and modernizing production this year, and expects high demand for its services to continue into next year, with revenue for the full year 2026 expected to grow by more than 40%. Despite the AI boom, investors have increasingly considered the finite nature of the AI boom, and TSMC shares have fallen 5% from their late-June peaks, though they are still up over 50% since the start of the year. The four American tech giants—Google, Microsoft, Meta (recognized as extremist in Russia), and Amazon (AWS)—plan to spend about $2.4 trillion on AI infrastructure in the coming years, ensuring continued high demand for chips. So far, TSMC's monthly results confirm this thesis.