TSMC's capex plans suggest the AI chip trade is not over for semiconductors, Nvidia, AMD and Micron. CFO Wendell Huang cites robust multi-year demand, including agentic AI, behind $60-64 billion of 2026 capex; TSMC expects 2026-28 spending to be even more significantly higher than in the prior three years. Hyperscaler earnings should reinforce the higher AI capex trajectory. CoreWeave-driven fears feel overdone, though the neocloud model does not appeal long term. x.com  x.com 

TSMC's strong AI demand is straining supply, while solid company fundamentals and attractive semiconductor valuations make an abrupt stop to its advance unlikely. TSMC's Wendell Huang expects 2026-28 capex to be significantly higher than in the previous three years to support customer growth; he says most capex is tied to long-term demand. x.com 

TSMC may lose pricing power as performance gains shift from shrinking transistors to stacking, interconnects and optics, while logic folding could make older processes competitive. Despite strong leading-edge demand, investors may overestimate the profit share its node leadership can retain. Its cautious expansion and past reluctance toward advanced packaging suggest a risk-averse culture that protects returns but could leave it late to disruptive technologies and key customers. x.com 

TSMC's AI-era growth opportunity makes it an incredibly bullish investment. CEO C.C. Wei said its annualized growth opportunity is probably higher than a high-50% CAGR. x.com 

Taiwan Semiconductor looks undervalued as AI capex keeps climbing, yet investors are sleeping on it. x.com 

TSMC looks like it has put in a blowoff top, rising even on an announcement that it cannot afford new ASML equipment. x.com 

TSMC's latest results point to AI chip demand still running ahead of supply, supporting the semiconductor and equipment trade. Cantor says TSMC raised its 2026 revenue outlook again, guided December-quarter sales above consensus and held 65-67% gross-margin guidance through the N2 ramp; its bullish sector read names Nvidia, Broadcom, AMD, ASML, Applied Materials, Lam Research and KLA. Jensen Huang says AI labs need not reach trillions in revenue to justify the buildout. x.com  x.com 

Architecture changes could lift TSMC wafer demand. Shifting from 12-high to 8-high lifts volumes; an on-device AI phone upgrade cycle would be enormously bullish, while ASIC gains over Nvidia help because ASICs use more wafers. TSMC is arguably more vital to AI buildout than MAG stocks and a reasonable extended-AI-cycle play at a not-crazy multiple, barring big macro events. Margins may not expand as capex rises; a Terrafab partnership, if it happens, would somewhat ease Intel competition risk. … Show more

TSMC's third capex raise in six months signals strong demand, not overreach, since management tends to be too conservative on capex; the market's 4% premarket drop looks wrong. Q2 EPS of $4.31 beat by $0.37 and revenue of $40.2 billion rose 33.7%, with a 67.7% gross margin. 2026 capex guidance rose to $60-64 billion from $52-56 billion, the next three years' capex should be significantly higher, and management sees strong AI demand through at least 2029-2030. x.com  x.com 

TSMC is the one company the AI chip boom cannot happen without, since every advanced chip runs through its fabs and Apple, Nvidia, AMD and Qualcomm all depend on it. Q1 profit rose 58% to a record and revenue grew 35% to $35B, with high-performance computing now 61% of sales. It is spending $52-56B on capex this year to build capacity competitors are a decade behind replicating. x.com