TSMC second-quarter profit jumps over 77%, beating estimates, on high-end chip boom
The chipmaker posted a record quarterly profit and lifted 2026 spending plans as AI demand drove sales of advanced-node chips.
- On Thursday, Taiwan Semiconductor Manufacturing Company reported record Q2 net profit of NT$706.6 billion , up 77% year-on-year, beating analyst estimates as Chairman C.C. Wei announced an additional $100 billion Arizona investment.
- Global demand for AI infrastructure has surged as governments and tech giants pour massive sums into data centers, turbocharged business for chipmakers like TSMC and created shortages, with the company serving major customers Nvidia, Apple and Broadcom.
- Advanced technologies of 7-nanometer and below accounted for 77% of wafer revenue, with 2-nanometer chips contributing 3% of sales, while high-performance computing represented 66% of company revenue, up 20% quarter-on-quarter.
- The company raised 2026 capex guidance to $60-64 billion from $52-56 billion and forecast full-year revenue growth slightly above 40%, signaling confidence that capital spending in the next three years will significantly exceed the previous three-year period.
- Industry observers view TSMC as a gauge of AI demand sustainability, though Counterpoint Research senior analyst William Li warned EUV supply constraints could limit capacity expansion, and analysts cite structural demand from hyperscalers backing the company's outlook.
157 Articles
157 Articles
Wall Street Balks at TSMC’s $100 Billion Bet on Growing AI Demand
Wall Street has a new message for TSMC, straight out of The Godfather: Take the profits, leave the capex. Despite announcing record revenue of $40 billion (beating expectations), net income of $22 billion (a 77% year-over-year increase) and beefed-up guidance for the rest of the year, US-listed shares of the premier semiconductor manufacturer still dropped more than 2% on Thursday following its second-quarter earnings call. Why? Because TSMC als…
TSMC to invest $100 billion in Arizona, expanding chip manufacturing in America
By Rajwa Quasim Taiwan Semiconductor Manufacturing Company (TSMC), the world’s biggest contract chipmaker, is set to invest $100 billion to expand its manufacturing operations at Arizona. The investment aligns with President Donald Trump’s efforts to bring more chip manufacturing back to American soil. This $100 billion is on top of the $165 billion TSMC had already promised for building chip factories in the U.S. CEO C.C Wei said the new invest…
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