While AI stocks took a beating in late June, one company barely flinched. Taiwan Semiconductor Manufacturing Company, the world’s most important chipmaker, saw its shares pull back roughly 7% from record highs near $476 to around $434 on July 2. Nvidia and AMD both faced steeper declines on June 26 as traders hedged positions and locked in profits across the AI sector. TSMC, the company that actually fabricates the chips powering the AI revolution, held comparatively firm.
Why TSMC keeps shrugging off the selloff
Every cutting-edge AI accelerator from the major chip designers runs through TSMC’s foundries, which gives the company a uniquely insulated position when sentiment sours on individual AI names.
CEO C.C. Wei said in April 2026 that AI demand remains “extremely robust.” The company backed it up with numbers. TSMC revised its full-year 2026 revenue growth expectations to exceed 30%. Capital expenditures were set between $52 billion and $56 billion. TSMC now projects AI-related revenue to grow at a 55% compound annual growth rate through 2029, up from previous guidance of 45%, driven by rising volumes, stronger pricing power, and the emergence of agentic AI technologies. Recent monthly sales data showed a 30% increase.
