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01-16 08:08

TSMC Just Dropped a $56 BILLION Bomb 💣🤯

Everyone is talking about TSMC’s profits, but they are missing the bigger picture. The real story? The company just announced they are spending up to $56 BILLION this year on upgrades.

Here is the ELI5 Breakdown:

The Surprise: Wall Street expected them to spend about $50B max. TSMC said, "Hold my beer," and smashed that number.

The Analogy: Imagine your local coffee shop suddenly orders 10 huge, expensive espresso machines. It tells you one thing: They expect a massive line of customers around the block. ☕️

The Signal: TSMC isn't gambling. They are seeing insane demand for AI chips (like the ones Nvidia uses), and they are going "all in" to build them.

Why should you care?

That $56 billion doesn’t vanish. It flows directly into the pockets of the companies that build the chip-making machines (the "pick and shovel" plays like ASML or Applied Materials).

TSMC is shouting that the AI boom is just getting started. The question is... are you listening?

TSMC & ASML Pop On Earnings: Semi Sector Goes Wild Again?
TSMC and ASML jump after the company delivered a strong earnings beat. Net profit jumped 35% YoY to T$505.7B, well above market expectations, while Q4 revenue climbed 20.5% YoY to T$1.05T. In U.S. dollar terms, revenue reached $33.7B, up 25.5% YoY, underscoring resilient AI-driven demand. EPS rose to T$19.50, reinforcing TSMC’s role as a core beneficiary of the global AI buildout. After a strong earnings beat, can AI demand keep TSMC’s growth momentum intact into 2026? With margins and profits accelerating, is the market still underpricing TSMC’s AI exposure?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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