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TSM
TSMC keeps the AI gravy train rolling
Taiwan Semiconductor Manufacturing just posted another “do you guys even have a slowdown?” kind of quarter. Net income came in at NT$706.56 billion, up 77.4% from a year ago, while revenue rose 36% to NT$1.27 trillion. Both numbers topped Wall Street’s expectations, which is usually the kind of thing that keeps investors from reaching for the panic button.
The best part? The machine is still humming
This wasn’t just a one-off beat. July revenue jumped 44.7% year over year, and the first seven months of 2026 were up 37% versus last year. In other words: the AI chip party is still going, and TSMC is basically the DJ, the venue, and the bar.
- Management also raised 2026 capital spending to a record $60 billion to $64 billion
- Third-quarter revenue is expected to land between $44.6 billion and $45.8 billion
- Gross margin guidance: 65% to 67%
- Operating margin guidance: 56% to 58%
That capex hike matters. It tells you demand is strong enough that TSMC is still willing to pour huge sums into more capacity instead of just milking the existing setup.
The ripple effects are the real story
TSMC also said it will produce three new chips for Xiaomi, and it’s reportedly teaming up with Sony on a $6.3 billion image sensor plant in Japan. Translation: the company isn’t just riding the AI wave — it’s expanding its role across more parts of the semiconductor supply chain.
Big picture: when TSMC spends like this and still posts profit growth that looks like a typo, it’s a sign the AI hardware boom is nowhere near done.