Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) gave investors another reminder that the artificial intelligence boom remains alive and well.
The world’s largest contract chipmaker reported a 67.9% year-over-year jump in June revenue on Monday, bringing first-half 2026 revenue to NT$2.4 trillion ($75 billion), up 35.6% from a year earlier. The results come just two days before TSMC is scheduled to report second-quarter earnings, with investors looking for fresh clues on AI demand and capital spending.
The latest sales figures also reinforce one of Wall Street’s biggest hedge fund bets.
Billionaire’s AI Conviction
Billionaire investor Lewis Sanders, founder of Sanders Capital, owns approximately 28.1 million TSMC shares valued at about $9.5 billion, making the chipmaker the firm’s largest holding and accounting for roughly 11.3% of its equity portfolio.
The position reflects a high-conviction bet on the company at the heart of the AI semiconductor supply chain.
Unlike chip designers such as Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Broadcom Inc. (NASDAQ:AVGO), TSMC manufactures the advanced processors that power AI servers for many of the industry’s biggest names. As AI spending has accelerated, the foundry has emerged as one of the biggest beneficiaries of surging demand for cutting-edge chips.
Even after TSMC’s strong rally over the past two years, Sanders has maintained the position as one of his firm’s largest investments, underscoring continued confidence in the long-term AI growth story.
AI Demand Remains Strong
TSMC’s June sales report suggests that demand has remained resilient heading into earnings.
June revenue reached NT$442.68 billion, up 6.2% from May, while first-half sales climbed 35.6% year over year. The figures reinforce expectations that AI infrastructure spending by hyperscalers and semiconductor customers remains robust despite growing debate over whether the pace of AI investment can be sustained.
The earnings report, due Wednesday, is expected to provide greater insight into management’s outlook for AI-related demand, advanced packaging capacity and capital spending—three areas investors will closely watch for signs that the industry’s multiyear growth cycle remains intact.
Why Investors Are Watching
Sanders isn’t alone in betting on TSMC. The chipmaker remains a favorite among several prominent hedge funds such as Fisher Asset Management, Coatue Management, Tiger Global Management and Viking Global Investors, reflecting its central role in supplying the world’s leading AI chip designers.
For investors, the latest sales report serves as another data point suggesting that, despite concerns about lofty AI valuations, the demand driving the sector’s biggest winners continues to hold up.
For Lewis Sanders and other long-term believers, Monday’s revenue update offered fresh support for a multibillion-dollar investment thesis that has so far paid off.
Photo by Sundry Photography via Shutterstock
