Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) stock fell in Friday’s premarket session as investors weighed the chipmaker’s sharply higher capital spending plans despite another quarter that topped expectations.
While Taiwan Semiconductor boosted its U.S. investment plans and raised its 2026 capital spending outlook to meet surging AI demand, the announcements also renewed concerns about rising costs, potential margin pressure, and whether massive AI-related spending is becoming increasingly difficult for investors to justify.
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Taiwan Semiconductor's AI Spending Spree Tests Investor Nerves
Taiwan Semiconductor hikes 2026 revenue outlook and raises capital spending to a massive $60B-$64B to fuel AI expansion.
