TSMC has surpassed 500 billion New Taiwan dollars (approx. $15.9 billion USD) in monthly sales for the first time on record. Driven by seasonal iPhone processor production and volume shipments of Nvidia Rubin AI hardware, August revenue jumped 10.1% month over month to hit 514.8 billion New Taiwan dollars (approx. $16.3 billion USD). Wall Street analysts now project the foundry will easily beat its third quarter revenue targets.
Combined revenue across July and August climbed to 982.38 billion New Taiwan dollars. That performance covers 67.6% of third quarter market consensus estimates, putting the chipmaker well ahead of initial projections. TSMC originally forecasted third quarter revenue between 44.6 billion and 45.8 billion US dollars, which translates to roughly 1.42 trillion to 1.46 trillion New Taiwan dollars at an exchange rate of 32 to 1. Institutional analysts now expect final quarterly numbers to challenge the high end of that guidance.
Demand for advanced nodes remains intense. The accelerating production ramp of the 2 nanometer process is expected to trim gross margins by 3% to 4% in the second half of the year due to early equipment rollout costs. High capacity utilization rates should offset that temporary margin drag.
Goldman Sachs maintained its 3,100 New Taiwan dollar (approx. $98 USD) price target after management meetings confirmed that long term gross margin goals above 56% remain secure. The investment bank views artificial intelligence as a multi year expansion cycle that is still in its earliest phase. As computing costs decline, broader commercial adoption should fuel continuous demand for advanced silicon packaging.
Tight manufacturing capacity gives TSMC strong pricing power. Market analysts expect the company to push contract price increases across both mature and cutting edge production lines. Backing that growth outlook, KGI Securities issued a Buy rating with a target price of 3,200 New Taiwan dollars (approx. $102 USD).
