Two of the semiconductor industry's most important companies just reported earnings, and the market's response has been anything but uniform.
Taiwan Semiconductor Manufacturing Company (TSMC), which produces most of the world's advanced chips, posted record profits. According to finance.biggo.com, TSMC's April–June net profit surged 77% to NT$706.5 billion, an all-time high. Yahoo Finance reports the results blew past forecasts, and TSMC also said it would invest another $100 billion in U.S. chip manufacturing. Looking ahead, TradingView and Yahoo Finance report the company is targeting sales growth of more than 40% and has lifted its 2026 capital spending plans to $64 billion — a bet on continued demand for AI chips.
Equipment maker ASML added to the optimism. According to Yahoo Finance, ASML raised its forecast on strong demand for AI chips, helping lift tech stocks.
The reaction across markets was split. On one hand, finance.biggo.com reports the Nikkei 225 surged 1,008 yen to reclaim the 68,000 level, with ASML and TSMC earnings boosting semiconductor charts. On the other, finance.biggo.com also notes that TSMC's results failed to bolster confidence in some quarters: the Philadelphia Semiconductor Index tumbled more than 2%, Taiwan index futures plunged over 1,200 points in the night session, and TSMC's own shares fell in after-hours trading.
Yahoo Finance notes the broader backdrop is uneasy, with tech stocks falling on Monday amid renewed U.S.–Iran hostilities and an ongoing debate over how much companies are spending on artificial intelligence — and whether it will pay off.
Why it matters: TSMC and ASML sit at the heart of the global AI supply chain, so their record numbers and massive spending plans signal that the AI buildout is still accelerating — even as investors grow anxious about how much longer the boom can last.