How does this affect NVIDIA's stock?

NVIDIA benefits from rising demand for AI GPUs, boosting its sales and stock performance.

Will AI chip demand continue?

Demand remains strong now, but analysts warn of potential slowdown if major companies cut investments.

TSMC Sales Jump 36% Highlights NVIDIA and Meta AI Demand

Q: Why did memory stocks plunge?

Memory stocks fell due to oversupply and weak demand for traditional memory, contrasting with AI chips.

TSMC reported a 36% sales jump, driven by AI chip demand from NVIDIA and Meta, while memory stocks plunged, highlighting a divergence in the semiconductor industry.

July 13, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

tsmc sales growth

36%

TSMC posted a 36% sales surge in the latest quarter, beating expectations, while memory stocks cratered. The split signals that AI hardware demand remains robust for some players but is cracking elsewhere.

Performance Details

TSMC reported record revenues fueled by demand for advanced AI chips used in large language model training. In contrast, memory stocks like Micron and Samsung slumped due to oversupply and weak demand for traditional memory.

Impact on NVIDIA and Meta

NVIDIA (NVDA), TSMC's largest customer for advanced chips, benefits directly from rising demand for AI GPUs. Meta (META) continues heavy investments in AI infrastructure, further boosting demand for TSMC's chips.

Broader Context

The divergent performance suggests AI chip demand remains a key growth driver in semiconductors, while other segments slow. Analysts see TSMC well-positioned to capture more market share as companies shift to advanced manufacturing nodes.

What It Means for Investors

Investors in NVIDIA and Meta may find confirmation of strong AI demand, but should monitor whether this growth is sustainable or a temporary surge.

Frequently Asked Questions

TSMC's sales rose 36% due to strong demand for AI chips from companies like NVIDIA and Meta.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.