TSMC July Sales Surge 26%, Driving Stock Prices Up

TradingKey - On Friday, August 8, Taiwan Semiconductor Manufacturing Co. (TSMC) reported its impressive July performance, recording revenue of NT$323.17 billion, marking the second-highest monthly total in its history and the highest for the same period in any previous year. 

The data revealed that July's revenue surged by 25.8% year-over-year and 22.5% month-over-month. Cumulatively, TSMC's revenue for the first seven months of this year reached NT$2.10 trillion, representing a 37.6% increase from the previous year.

TSMC July 2025 Revenue Report, source: TSMC

Last month, TSMC Chairman and Chief Executive Officer Dr. C.C. Wei raised the company's full-year performance forecast, citing robust demand for AI as a significant growth driver. He projected that TSMC's revenue for the full year of 2025 will expand by 30%, surpassing the earlier forecast of 25%.

In Taiwan's stock market, TSMC (2330.TW) saw its share price briefly hit a record high of NT$1,185 on Friday, before closing down 0.42% at NT$1,175. In the U.S. pre-market trading on Friday, TSMC (TSM) rose by 0.3% at the time of reporting.

Commenting on TSMC's prospects, Tsai Ming-Yen, Chairman of Capital Securities Corporation, stated that the company's fundamentals remain solid, with sustained strong demand for AI and stable customer orders, which could potentially push the stock to new highs. However, he cautioned about the risks that tariff policies might pose.

Previously, President Trump announced after the U.S. market closed on Wednesday that all imported products containing semiconductors would face a 100% tariff, except for those produced in the U.S. or with clear commitments. 

Analysts suggest that TSMC, having already invested in chip manufacturing in the U.S., may not face significant impacts. The optimism surrounding TSMC's outlook is reflected in its U.S. stock performance, which rose by 4.86% on Thursday.

Nonetheless, some academics express skepticism about TSMC's future in light of the seemingly favorable tariff exemption policy. Stacy Rasgon, a senior semiconductor analyst at Bernstein, remarked that while the chip tariff is clear, broader tariffs remain a challenge. It is uncertain whether Trump will exempt only raw semiconductors or if tariffs will extend to end-use devices and components.

Furthermore, some scholars express concerns that the "zero tariff" is merely a transitional policy, with Trump's ultimate aim being to keep chip production in the U.S. Should future policies tighten, chips produced by TSMC in Taiwan might lose their price competitiveness or even be excluded from the U.S. market. This could affect TSMC's client base, as major clients like Apple and NVIDIA might be compelled to shift production to the U.S.