On Monday, Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) reported a significant increase in July sales as demand for its artificial intelligence-related chips continues to rise. TSMC, the world’s largest chipmaker, reported July revenue of 467.58 billion Taiwanese dollars ($14.5 billion), up 44.7% from a year earlier.
Investors are closely scrutinizing spending and returns on investment by major technology companies, as the sector continues to channel unprecedented amounts of capital into building AI infrastructure, including the design and procurement of semiconductors. TSMC makes chips for a range of customers, including custom semiconductors for Google and Nvidia, so the Taiwanese company’s sales are an important gauge of demand in the technology sector.