Taiwan Semiconductor Reports 26% YoY Surge in July Revenue, AI Demand Remains Strong

Taiwan Semiconductor Manufacturing reported a 26% YoY surge in July revenue, driven by strong demand for AI-related chips. The company's sales reached NT$323.2 billion ($10.8 billion), reinforcing signs of accelerating investment in artificial intelligence. As a major supplier to Nvidia and Apple, Taiwan Semiconductor's results indicate a growing trend in the AI chip market.

Taiwan Semiconductor Manufacturing (TSM) has reported a significant 26% year-over-year (YoY) surge in its July revenue, reaching NT$323.2 billion ($10.8 billion). This growth was primarily driven by strong demand for artificial intelligence (AI) chips, indicating a robust market for AI-related semiconductor products. The company's sales performance aligns with analysts' expectations of a 25% increase in third-quarter revenue [2].

TSM's results underscore the accelerating investment in AI technologies, with the company serving as a major supplier to key players like Nvidia and Apple. The company's revenue has been on a steady upward trajectory, increasing by 38% from January through July compared to the same period in 2024 [2]. This growth is notable despite challenges posed by a stronger Taiwanese dollar.

The company's shares on the Taipei exchange reached a record high following the announcement of new chip tariffs by the Trump administration. However, TSM is exempt from these tariffs due to its investments in US production facilities, which further underscores the company's strategic positioning in the global semiconductor market [2].

Institutional investors have shown varied interest in TSM, with Bank of Nova Scotia Trust Co. reducing its holdings by 50.4% during the first quarter, selling 1,955 shares and bringing its total to 1,926 shares worth approximately $320,000 [1]. Meanwhile, other institutional investors such as City Holding Co., Accredited Wealth Management LLC, Signature Resources Capital Management LLC, Graybill Wealth Management LTD., and Glass Jacobson Investment Advisors llc have increased their stakes in the company, reflecting the broader investor confidence in TSM's growth prospects [1].

Analysts maintain a consensus rating of "Moderate Buy" for TSM, with target prices ranging up to $270.00. Several firms, including Barclays, Citigroup, Needham & Company LLC, and Susquehanna, have issued positive ratings and price targets for the company's shares [1].

In summary, Taiwan Semiconductor Manufacturing's strong July revenue performance, driven by AI chip demand, highlights the company's pivotal role in the AI semiconductor market. The company's strategic positioning and robust growth prospects continue to attract institutional investors and analysts, positioning TSM as a key player in the global semiconductor industry.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-taiwan-semiconductor-manufacturing-company-ltd-nysetsm-shares-sold-by-bank-of-nova-scotia-trust-co-2025-08-03/
[2] https://www.investing.com/news/stock-market-news/taiwan-semiconductors-july-sales-surge-26-on-ai-chip-demand-93CH-4178777