US Markets
Home›US Markets›Equities›TSMC cuts lower after record sales, raises 2026 AI chi…
TSMC cuts lower after record sales, raises 2026 AI chip spending
TSMC lifted its 2026 capital spending forecast to $60 billion to $64 billion and increased its revenue growth outlook to slightly above 40%, with an additional $100 billion investment planned in Arizona.
Taiwan Semiconductor Manufacturing shares fell about 4% on Thursday after the company reported record second-quarter revenue of $40.2 billion, while also raising its capital spending and revenue outlook for 2026. The update points to continued strength in demand for AI chips and data center semiconductors, Yahoo Finance reported.
TSMC now expects 2026 capital expenditures of $60 billion to $64 billion, at least $4 billion above its prior forecast. The company also raised its revenue growth projection to slightly more than 40%, compared with the 30%-plus increase it had previously anticipated.
Management said it sees strong multi-year AI demand, with TSMC chair C.C. Wei stating the firm remains highly confident in the AI megatrend. Wei also warned that rising component prices and macroeconomic uncertainties are pressuring consumer and other price-sensitive end markets, and noted that management expects higher prices.
As part of its spending plan, TSMC announced an additional $100 billion investment in Arizona. Despite the stronger guidance, the stock decline reflected investors taking profits, and the results followed similar optimism from other chip equipment makers including ASML, Yahoo Finance said.