TSMC just reported a record month for revenue ahead of critical earnings report on Thursday
By Nora Redmond
Revenue for Taiwan Semiconductor Manufacturing Corp. grew by 67% year-on-year to 442.68 billion new Taiwanese dollars in June, the company said.
Taiwan Semiconductor Manufacturing Corp., or TSMC, just reported a record month for revenue as demand for its chips soared - and analysts think there's more to come.
The $2.25 trillion company said its net revenue increased by 67% to 442.68 billion new Taiwanese dollars, or $13.2 billion, in June. It brings revenue for the period covering April to June to 1.27 trillion new Taiwanese dollars - about $40 billion, and makes June the best month TSMC has ever seen for revenue.
The figure came in higher than analysts' estimates of 1.264 trillion new Taiwanese dollars, according to estimated compiled by the London Stock Exchange Group.
Shares in the 39-year-old company (TW:2330) edged 1% higher in Taiwan, with overall gains at almost 60% since the start of the year. Its stock listed on the New York Stock Exchange fell 1% in early trade.
TSMC will report its results for the second quarter on Thursday, with earnings per share of 24.45 new Taiwanese dollars forecast, per estimates collected by LSEG, up from 15.36 in the year-earlier period.
It comes as the company has proved invaluable to the build-out of artificial intelligence, with Big Tech names like Apple (AAPL) and Nvidia (NVDA) relying on TSMC's semiconductors as the race continues to gain dominance in the AI industry.
Goldman Sachs strategists led by Evelyn Yu cited demand for AI and high-performance computing as a "multi-year structural growth engine" for TSMC.
Analysts at JPMorgan, led by Gokul Hariharan, wrote in a note on Monday that they now expect gross margin to reach 69.5% in the second quarter, above even the higher end of guidance of between 65.5% and 67.5%. TSMC reported a gross margin of 58.6% in the second quarter of 2025.
They say so-called hot-run orders - when companies pay premiums of 50% to 100% for orders to be fulfilled ahead of schedule - and improving efficiency as the drivers of this potential beat.
-Nora Redmond
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07-13-26 1003ET
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