TSMC Rises Ahead of Nvidia's Critical AI Demand Test

TSMC's July revenue surged 44.7% from one year earlier, and investors are eagerly awaiting Nvidia's earnings report on August 26 to gauge demand for advanced chips.

Nvidia's guidance will reveal whether the AI machine is still roaring or finally catching its breath.

TSMC is betting billions that the AI market continues to grow, with July revenue exploding to NT$467.58 billion and management raising its 2026 capital-spending forecast to between $60 billion and $64 billion.

The stock's valuation indicates Wall Street expects near-perfect execution from TSMC, which has climbed roughly 38% this year and trades near 30 times earnings.