(Aug 10): Taiwan Semiconductor Manufacturing Co (TSMC) reported a 45% rise in its monthly sales, a sign of sustained demand for artificial intelligence (AI) hardware in the face of market volatility.

Revenue at the go-to chipmaker for Nvidia Corp and Apple Inc reached NT$467.58 billion (US$14.5 billion or RM59.3 billion) in July. Analysts on average are estimating a 46.8% increase in sales for the current quarter.

Last month, TSMC raised its spending and revenue projections for the year, reflecting confidence that torrid growth in demand for chips powering AI development would extend into 2027 and beyond. TSMC now expects its capital expenditure to reach a record level of US$60 billion to US$64 billion in 2026 and forecasts its full-year sales to grow slightly above 40% in US dollar terms.

Tech valuations stalled in July, hit by persistent concerns around data centre overcapacity and questions over whether the trillions of dollars in AI-related spending will deliver meaningful returns. 

TSMC shares are down around 5% from a peak in late June. They are still up more than 50% since the beginning of this year.

Alphabet Inc, Meta Platforms Inc, Microsoft Corp and Amazon.com Inc — the four largest players in the data centre race — have pledged nearly US$2.4 trillion in AI-related commitments over the coming years, pointing to massive ongoing investment in AI infrastructure.

Uploaded by Tham Yek Lee