TSMC quarterly sales surge 36% as AI-driven demand keeps foundry at full tilt

KUALA LUMPUR, 21 JULY 2026 —

TSMC logged a 36% year-on-year jump in quarterly sales to NT$442 billion in June, while SK Hynix sank 13% as memory stocks led Asian tech shares lower.

Taiwanese chipmaker June revenue rose 67.9% from a year earlier, according to its filing, and its shares climbed nearly 2% even as the MSCI Asia Pacific index slipped 1.88–2.23% after reopening from a typhoon shutdown. Memory makers came under pressure from oversupply concerns and profit-taking, whereas foundries supplying AI customers continued to benefit from steady long-term demand.

TSMC’s N3 production capacity is sold out and the company is building three advanced packaging facilities at the Chiayi Science Park’s Phase II. The facilities are expected to generate more than NT$300 billion in annual output and create 9,000 jobs.

NVIDIA, TSMC’s largest customer, reported Q1 FY2027 revenue of $81.61 billion on May 20, up 85.2% year-on-year and ahead of the $81.6 billion forecast. Non-GAAP earnings per share reached $1.87 versus $1.77 expected. Morgan Stanley maintained an Overweight rating with a $288 price target, citing AI labs, hyperscalers, sovereign AI and neocloud demand.

NVIDIA shares dipped 1.99% to $206.77 on the same day, tracking broader Asian weakness rather than the foundry’s positive update.

AMD posted Q1 2026 non-GAAP EPS of $1.37 on revenue of $10.25 billion, beating expectations of $1.29 per share. Data center revenue climbed 57% year-on-year, driven by multi-gigawatt AI commitments from OpenAI and Meta on its MI450 series, the company said.

TSMC’s earnings release will be read as the clearest signal yet on whether AI chip demand still exceeds supply. Analysts note that the foundry’s sold-out N3 capacity suggests sustained pricing power for advanced chips, while a memory selloff could pressure HBM pricing and, in turn, the cost structure of NVIDIA’s Blackwell chips and AMD’s Instinct accelerators.

For fund managers and policymakers, the divergence shows how the AI infrastructure buildout benefits foundries such as TSMC while exposing memory suppliers like SK Hynix to cyclical headwinds.

Related: TSMC