TSMC (TSM) Stock Tumbles After Chip Giant Reports Second-Lowest Monthly Sales in 2025

TSMC shares take a hit as the semiconductor behemoth stumbles—posting its second-worst sales month of 2025. Wall Street shrugs; analysts still expect record bonuses.

What’s dragging down the chip titan?

Soft demand? Inventory glut? Or just another case of ‘sell the news’ in a market that treats earnings reports like roulette wheels? The numbers don’t lie—but hedge funds will spin them anyway.

One thing’s certain: When TSMC sneezes, the entire tech sector reaches for masks. Meanwhile, crypto traders stack satoshis—volatility’s more predictable when you’re betting on human greed instead of fickle fab yields.

TLDRs;

• TSMC posted NT$263.7 billion ($9B) in June sales, the second-lowest in 2025.
• June revenue dipped 17.7% from May but rose 26.9% year-on-year.
• Q2 revenue hit a record NT$933.8 billion ($31.9B), powered by AI chip demand.
• TSMC shares dropped 0.9% as markets await the July 17 earnings call.

Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, reported June sales of NT$263.7 billion, approximately $9 billion, marking the second-lowest monthly revenue for the company in 2025.

The announcement sent TSMC shares lower, with the stock dipping 0.9% on July 10 to close at $229.76. Pre-market figures showed continued weakness, with shares sliding further to $229.55.

The revenue for June, while up nearly 27% from a year earlier, represents a 17.7% decline compared to May’s figures. This has sparked concern among investors as the drop follows a strong start to the second quarter and indicates potential fluctuations in short-term demand. June’s performance remained only slightly higher than February’s low of NT$260 billion, signaling that monthly momentum may be losing steam.

AI Boom Powers Quarterly Record Despite Monthly Dip

Although June’s figures disappointed, the broader picture reveals significant strength. For the second quarter of 2025, TSMC reported a record-setting NT$933.8 billion in revenue, or $31.9 billion. This surge was fueled by robust demand for advanced 3-nanometer and 5-nanometer chips, largely driven by AI applications.

These high-performance nodes now account for a substantial majority of TSMC’s wafer revenue, a sign of shifting priorities in global chip demand.

In the first six months of the year, the company pulled in NT$1.77 trillion, or about $60.5 billion, a 40% increase from the same period in 2024. With AI continuing to push the industry into a new growth cycle, TSMC has reaffirmed its full-year U.S. dollar growth forecast of 24% to 26%, indicating management’s confidence that the June downturn is a temporary blip rather than a reversal of fortunes.

Market Dominance Shields TSMC From Bigger Fallout

Despite the drop in monthly revenue, TSMC’s sheer scale and near-monopoly in advanced semiconductor manufacturing lend it a level of resilience rarely seen in the sector. The company holds nearly 65% of the global foundry market, dwarfing its closest competitor, Samsung. This dominance allows it to maintain profitability even when facing external pressures such as inflation, supply chain disruptions, and potential U.S. tariffs.

TSMC’s market power enables a cycle of reinvestment that further cements its lead: high margins fund aggressive R&D, which leads to more advanced chips and stronger customer loyalty. This dynamic has helped the company maintain robust financial health even as short-term metrics like monthly sales fluctuate.

Eyes on July 17 as Investors Await Forward Guidance

Investors will now turn their attention to TSMC’s upcoming earnings report, scheduled for July 17, where the company is expected to provide clarity on third-quarter expectations and further commentary on geopolitical risks.

Given recent tensions surrounding U.S.-Taiwan trade dynamics and global supply chain shifts, markets will be keen to hear more about TSMC’s strategic positioning, particularly regarding its U.S. expansion efforts and production diversification.

While June’s numbers may reflect temporary softness, TSMC’s performance in the first half of 2025 and its leadership in AI chip production suggest the broader story remains one of structural growth. The stock’s decline may simply represent a pause as investors wait for confirmation that the company’s long-term trajectory remains intact.