Why Tsmc's Record Revenue Isn't Reviving the AI Trade

Dow Jones07-13 19:42

Taiwan Semiconductor Manufacturing Co. reported record monthly revenue on Monday -- but that wasn't enough to breathe life into the faltering artificial-intelligence trade.

The Taiwanese chip maker said its net revenue for June jumped 68% from a year ago to 442.68 billion New Taiwan dollars ($13.8 billion), notching its highest ever monthly sales figure.

Shares didn't get much of a boost, with TSMC's American depositary receipts inching up just 0.2% to $435 ahead of Monday's opening bell. The ADRs have risen 43% so far this year.

Record-breaking revenue has become par for the course as the AI boom drives up chip demand. The June numbers bring TSMC's revenue total for the second quarter to NT$1.27 trillion -- above guidance, but a touch below the NT$1.28 trillion analysts polled by FactSet were expecting.

Still, investors shouldn't be too disappointed about Monday's muted gains. Things could have been much worse.

Other AI-linked stocks including Advanced Micro Devices, Intel, Micron, and SK Hynix were all falling ahead of the opening bell, as investors wondered how long the AI spending boom would last.

The worry on Wall Street is that Big Tech companies may soon signal they're unwilling to continue ramping up capital expenditures, which could hit the top and bottom line for TSMC and its peers.

The next big test for the stock will come on Thursday, when TSMC is set to report its second-quarter earnings.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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July 13, 2026 07:42 ET (11:42 GMT)

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