{"id":1092951,"date":"2026-07-16T14:17:16","date_gmt":"2026-07-16T14:17:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1092951\/"},"modified":"2026-07-16T14:17:16","modified_gmt":"2026-07-16T14:17:16","slug":"tsmc-raises-capex-and-revenue-forecast-highlighting-growing-ai-chip-demand","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1092951\/","title":{"rendered":"TSMC raises capex and revenue forecast, highlighting growing AI chip demand"},"content":{"rendered":"\n

What happened: <\/strong>Taiwan Semiconductor Manufacturing (TSM<\/a>) stock moved 4% lower in premarket trading on Thursday. <\/p>\n

What’s behind the move: <\/strong>The world’s largest semiconductor manufacturer posted record second quarter revenue of $40.2 billiion and raised its capital spending and revenue outlook for the year, underscoring growing demand for AI chips and data centers. <\/p>\n

TSMC, which is the primary chip supplier for Nvidia (NVDA<\/a>), now expects capital expenditures of $60 billion to $64 billion in 2026, at least $4 billion above its previous forecast. <\/p>\n

The outlook comes as investors scrutinize companies’ AI spending and whether it will translate to profits. <\/p>\n

What else you need to know: <\/strong>While the company said in the third quarter it sees strong demand, management warned of rising prices. <\/p>\n

As part of its capital expenditures, TSMC announced an additional $100 billion investment in Arizona. <\/p>\n

The company also raised its revenue growth projection to slightly more than 40%, well above the 30%-plus increase it had previously anticipated. <\/p>\n

“Our conviction in the multi-year AI megatrend remains very high supported,” TSMC chair C.C. Wei said during Thursday’s earnings call. <\/p>\n

Despite the stronger outlook, TSMC’s US-listed shares fell as investors took profits off the table. The stock is up more than 36% year to date. <\/p>\n

“Looking ahead, we observe consumer and price sensitive end market segment are being challenged due to the impact of rising component prices and macroeconomic uncertainties,” Wei said. <\/p>\n

Investors were closely watching TSMC’s outlook and capital expenditures as another litmus test of the AI trade. The results come after Dutch chipmaker\u00a0ASML raised its outlook,<\/a>\u00a0as leading semiconductor makers continue to spend on the advanced equipment needed to manufacture cutting-edge processors and memory chips. <\/p>\n

\"Taiwan<\/a> Taiwan Semiconductor Manufacturing’s headquarters in Hsinchu, Taiwan. (AP Photo\/Chiang Ying-ying) \u00b7 ASSOCIATED PRESS <\/p>\n

Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities. <\/p>\n

Click here for in-depth analysis of the latest stock market news and events moving stock prices<\/strong><\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"What happened: Taiwan Semiconductor Manufacturing (TSM) stock moved 4% lower in premarket trading on Thursday. What’s behind the…\n","protected":false},"author":2,"featured_media":1092952,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[3163],"tags":[323,1942,64688,121438,298354,178015,11138,75991,53,16,15],"class_list":["post-1092951","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-capital-spending","tag-premarket-trading","tag-revenue-outlook","tag-semiconductor-manufacturer","tag-taiwan-semiconductor","tag-taiwan-semiconductor-manufacturing","tag-technology","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116930088006009555","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1092951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1092951"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1092951\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1092952"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1092951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1092951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1092951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}