TSMC posted record $40 billion revenue. Its stock fell 4%. Investors are no longer buying the AI spending story on faith.

TL;DR

TSMC posted record $40B Q2 revenue but stock fell 4% after it raised capex to $60-64B. Nasdaq 100 dropped 1.4%. Good news is no longer enough for AI stocks.

TSMC posted record second-quarter revenue of over $40 billion, up 36% year on year, with net income rising 77%. The result should have been a triumph. Instead, shares fell 4%, dragging the Nasdaq 100 down 1.4% on Thursday and compounding losses from the day before.

The problem was not the earnings but the spending. TSMC raised its 2026 capital expenditure forecast to $60-64 billion, up from $52-56 billion. Investors are no longer willing to take rising AI infrastructure spending on faith. Good news is not enough to sustain confidence when the industry has spent nearly $1.6 trillion on AI development over the past decade without yet justifying it through proportionate returns.

The semiconductor index has fallen nearly 19% from its...

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