tsmc defies market, june sales soar on ai demand

2025-07-10 tsmc

Taipei, Thursday, 10 July 2025.
taiwan semiconductor manufacturing (tsmc) reported impressive june and q2 sales. revenue reached $31.9 billion, a 38.6% increase year-over-year, fueled by strong demand for ai applications. this surge solidifies expectations for continued growth in ai spending. tsmc’s success comes as nvidia’s valuation hits $4 trillion, highlighting the critical role tsmc plays in ai infrastructure. the chipmaker’s performance underscores its importance in the global tech supply chain, manufacturing advanced chips for industry giants like apple and nvidia. the full report is due july 17.

financial performance

TSMC’s June revenue reached approximately $8.9 billion [1]. Second-quarter revenue totaled $30.17 billion, a 46% increase from the previous year [1]. These figures surpassed analyst expectations, which had estimated June sales at $8.51 billion and second-quarter revenue at $29.78 billion [1]. The strong financial results reflect the robust demand for TSMC’s advanced chip manufacturing, particularly for AI applications [2][3].

stock market reaction

The initial market reaction to TSMC’s sales figures was mixed [1]. While the stock initially rose, it later declined by 1% to $229.43 [1]. This wavering may reflect investor uncertainty, despite the positive earnings report [1]. TSM stock reached a record high of $237.58 on July 3 [1]. The stock’s performance is influenced by its position on the IBD Global Leaders and Tech Leaders lists [1].

manufacturing capacity and expansion

TSMC is expanding its manufacturing capabilities to meet the growing demand for AI chips [4]. The company plans to invest an additional $100 billion to increase production in Arizona, Japan, Germany, and Taiwan [4]. CEO Wei Zhejia stated that demand for AI chips continues to outpace supply [4]. TSMC aims for revenue growth of around 20% in 2025, driven by this expansion and sustained AI demand [4].

expert analysis and market outlook

Bloomberg Intelligence analyst Charles Shum suggests TSMC’s second-quarter sales likely reached the high end of its $28.4 billion to $29.2 billion guidance [7]. Shum believes strong AI demand offsets weaknesses in mobile and consumer sectors [7]. He anticipates TSMC achieving its 25% annual dollar sales growth target [7]. However, Shum also expects operating margins to be near the lower end of the 47% guidance range due to a weaker dollar [7].

geopolitical and economic considerations

Investors remain cautious about the potential impact of tariffs and global economic conditions on the electronics industry [7]. Trade tensions have previously led to lowered global growth forecasts, raising concerns about demand for products from iPhones to computing [7]. TSMC’s strategic expansions into multiple countries aim to mitigate geopolitical risks and ensure a stable supply chain [4].

Bronnen

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