TSMC’s strong outlook fires up hopes of sustained AI boom
- Jan 17
- 1 min read
Taiwan Semiconductor Manufacturing Co. is earmarking as much as $56 billion in capital spending for 2026, a stronger-than-anticipated projection that signals its confidence in the longevity of the global AI boom.
Asia’s most valuable company expects expenditures of $52 billion to $56 billion this year, up at least a quarter from 2025. It also foresees revenue growth of close to 30% in 2026, faster than the average analyst estimate. TSMC’s ADRs climbed as much as 5.6% in US trading, while shares in key supplier ASML Holding NV rose as much as 8% to a record in Europe, sending its market value beyond $500 billion.
The outlook from TSMC — a bellwether for the artificial intelligence boom — reflects a development frenzy by the likes of Meta Platforms Inc. and Amazon.com Inc. that’s spurred demand for Nvidia Corp. accelerators.
It’s likely to help assuage some concerns about the sustainability of current data center spending. TSMC — Nvidia’s main chipmaker — is accelerating its own global capacity buildout, most notably in the US, to sate future demand.
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