TSMC Eyes 30% Upside; $250B US-Taiwan Deal Hits High

TSMC ( TSM)

• Financial Status: Expected 2026 revenue growth in USD of nearly 30%, with the capital expenditure budget raised to $52-56 billion.

• Strategic Expansion: Driven by the U.S.-Taiwan trade agreement, the Taiwan tech industry has committed at least $250 billion in direct investment to the U.S., with the Taiwan government providing an additional $250 billion in credit guarantees. TSMC will lead the expansion in Arizona and plans to accelerate U.S. capacity expansion.

• Market Sentiment: ADR share price rose approximately 4.5%, leading a rebound in the semiconductor sector; C.C. Wei stated he is not worried about an AI bubble but emphasized the need for cautious investment risk management.

  
  

ASML (ASML)

• Market capitalization broke the $500 billion mark; as a key lithography equipment supplier for TSMC, the share price rose approximately 5.4% (hitting an intraday high of $1358).

  
  

Nvidia ( NVDA)

• Driven by TSMC's optimistic outlook, the share price rose approximately 2%, continuing the momentum of AI chip demand.

  
  

AMD ( AMD)

• Benefiting from TSMC's financial guidance, the share price followed the semiconductor sector rebound and continued its cooperation momentum with OpenAI.

  
  

Applied Materials (AMAT)

• Reached a new historical high following the semiconductor stock rally, with an increase of 5.7% (rising from $301.89 to $319.08).

  
  

KLA ( KLAC)

• Share price rose approximately 6.8-7.2% during the rebound, reaching a historical high.

  
  

Lam Research ( LRCX)

• As the Philadelphia Semiconductor Index (SOX) hit a historical high, the share price rose between 4% and 5%.

  
  

Samsung Electronics (005930.KS)

• As a major customer of ASML, it is one of the world's top three chip manufacturers alongside TSMC and Intel.

  
  

Reddit (RDDT)

• RBC SMB advertising outlook caused the share price to plunge 9.1%.

  
  

IBM (IBM)

• Share price fell approximately 3.5%, reflecting sluggish performance in traditional software services compared to AI hardware.

  
  

Verizon (VZ)

• Reported a large-scale network outage caused by software issues; currently issuing $20 compensation credits to affected customers.

  
  

PJM Interconnection

• Lowered its 2027 summer electricity demand forecast by 2%, despite expert warnings that data center capacity could increase by 17% by 2030.

  
  

Coinbase (COIN)

• CEO Brian Armstrong publicly opposed the CLARITY Act, stating "no bill is better than a bad bill," and expressed concerns about restrictions on tokenized stocks and stablecoin rewards.

  
  

Technology Sector News

• Semiconductor Market Catalysts: TSMC's 30% growth forecast and the total $500 billion U.S.-Taiwan investment commitment drove a massive industry-wide rebound; the commitment aims to promote manufacturing "reshoring" to mitigate geopolitical risks.

• The Software and Hardware Divide: A gap between "winners and losers" has emerged in the market; AI-driven hardware companies (Nvidia (Nvidia, NVDA), Taiwan Semiconductor Manufacturing Company (TSMC, TSM)) recorded record gains, while traditional software and service providers (IBM (IBM, IBM), Salesforce (Salesforce, CRM)) faced market headwinds.

Disclaimer:

For informational purposes only; not investment advice. This content is generated by Agentic AI; we do not guarantee its accuracy or completeness. AI-generated information may contain errors or interpretative biases and should not be relied upon as the sole basis for investment decisions. Readers must possess appropriate risk tolerance and exercise independent judgment. We assume no liability for any investment outcomes resulting from reliance on this information.