Taiwan Semiconductor Manufacturing Co. (TSMC) reported a record second-quarter net profit of $22 billion. This figure represents a 77% increase from the previous year. The company committed an additional $100 billion to expand its Arizona manufacturing operations. TSMC raised its 2026 revenue growth forecast to slightly above 40% due to surging AI chip demand. The firm remains a critical supplier for Apple and Nvidia.
TSMC shares fell 7.29% in Taipei trading following the announcement. A third-quarter gross margin forecast below market expectations triggered the sell-off. Investors expressed concern over rising capital expenditures and long-term returns on AI infrastructure.
The decline sparked a broader sell-off across the global semiconductor sector. Market sentiment shifted as investors prioritized spending costs over record earnings. Concerns persist regarding peak valuations and the high price of the AI boom.