TSMC raises capex and revenue forecast, highlighting growing AI chip demand

What happened: Taiwan Semiconductor Manufacturing (TSM) banal moved 4% little successful premarket trading connected Thursday.

What's down the move: The world's largest semiconductor shaper posted grounds 2nd 4th gross of $40.2 billiion and raised its superior spending and gross outlook for the year, underscoring increasing request for AI chips and information centers.

TSMC, which is the superior spot supplier for Nvidia (NVDA), present expects superior expenditures of $60 cardinal to $64 cardinal successful 2026, astatine slightest $4 cardinal supra its erstwhile forecast.

What other you request to know: While the institution said successful the 3rd 4th it sees beardown demand, absorption warned of rising prices.

As portion of its superior expenditures, TSMC announced an further $100 cardinal concern successful Arizona.

The institution besides raised its gross maturation projection to somewhat much than 40%, good supra the 30%-plus summation it had antecedently anticipated.

"Our condemnation successful the multi-year AI megatrend remains precise precocious supported," TSMC Chairman C.C. Wei said during Thursday's net call.

Despite the stronger outlook, TSMC's US-listed shares fell arsenic investors took profits disconnected the table. The banal is up astir 40% twelvemonth to date.

"Looking ahead, we observe user and terms delicate extremity marketplace conception are being challenged owed to the interaction of rising constituent prices and macroeconomic uncertainties," Wei said.

Investors were intimately watching TSMC's outlook and capex arsenic different litmus trial of the AI trade. The results travel aft Dutch chipmaker ASML raised its outlook, as starring semiconductor makers proceed to walk connected the precocious instrumentality needed to manufacture cutting-edge processors and representation chips.

Ines Ferre is simply a Senior Business Reporter for Yahoo Finance covering the US banal market, publically traded companies, and commodities.

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