TSMC Revenue Soars 68%. Nvidia, AI Stocks Watch Closely
Taiwan Semiconductor Manufacturing Co. reported its June revenue of NT$442.68 billion, a 67.9% jump from a year earlier and the best month in the company’s history, as demand for AI chips from clients including Nvidia continued to outstrip supply.
The figure pushed TSMC’s second-quarter revenue to roughly $39.6 billion, edging past the top end of the company’s own guidance and setting up Thursday’s full earnings report as a key test of whether the AI trade still has room to run. TSMC’s advanced manufacturing lines are effectively sold out for the rest of the year, according to one analyst, underscoring how tightly Nvidia and other chipmakers now depend on the Taiwanese foundry’s capacity.
A Record Month
TSMC’s consolidated net revenue for June rose 6.2% from May and 67.9% from June 2025, the company said in a filing. Revenue for the first half of 2026 totaled NT$2.4 trillion, up 35.6% from the same period last year.
The June figure lifted second-quarter revenue to about NT$1.27 trillion, or roughly $39.6 billion, ahead of the top of TSMC’s guidance range of $39 billion to $40.2 billion, which the company issued at its April earnings call. TSMC’s Taipei-listed shares closed up 1% on Monday.
Why the Number Matters for the AI Trade
Sravan Kundojjala, an analyst at SemiAnalysis, described TSMC’s results as “quite robust,” noting that second-quarter revenue beat the high end of the company’s own guidance. He added that the outcome stood out because June revenue has typically declined month over month over the past four years.
Kundojjala said AI-related chip supply remains tight, with TSMC’s advanced N3 manufacturing process, used by leading AI GPU and CPU makers, effectively sold out. He estimated TSMC is on track to over $40 billion in AI chip revenue in 2026.
TSMC Chief Executive C.C. Wei called AI chip demand “extremely robust” at the company’s April earnings call, saying at the time that TSMC would be unable to fully meet demand from American customers for years even as new capacity comes online.
What It Means for Nvidia
Nvidia has reserved roughly 60% of TSMC’s advanced chip-packaging capacity for 2026, reflecting how concentrated AI chip production has become around a small number of suppliers. TSMC commands a 73% share of the global pure-foundry market as of the first quarter of 2026.
The tightness in supply has been a central theme of the AI trade this year. Strong demand supports revenue growth for TSMC and its clients, but persistent capacity constraints also raise questions about how much further output can expand in the near term.
Expansion Plans and What Comes Next
TSMC plans to add two advanced chip-packaging plants at the Chiayi Science Park in southern Taiwan, with the first facility already in mass production and a second expected to begin shortly, based on remarks from Taiwan’s National Science and Technology Council.
Investors are now looking to TSMC’s full second-quarter earnings report, due Thursday, for updates on margins, full-year guidance and progress on the company’s two-nanometer manufacturing technology, which has already drawn strong customer interest.
