#台积电Q2净利暴增77.4% A blockbuster earnings report, yet the stock price plunged more than 4% in pre-market trading.

On July 16, TSMC released its 2026 Q2 earnings report: revenue of 1.27 trillion New Taiwan dollars (about $40.2 billion), up 36% year over year; net profit of 706.6 billion New Taiwan dollars, up 77.4% year over year, sharply exceeding market expectations of 623.7 billion New Taiwan dollars. Gross margin climbed to 67.7%, with 7-nanometer and below advanced process contributing 77% of wafer revenue—3-nanometer accounted for 30%, 5-nanometer for 33%, and the 2-nanometer process contributed revenue for the first time, with a share of 3%.

There is only one core driver behind the surge in performance: AI. High-performance computing now makes up 66% of TSMC’s revenue. Wei Zhejia said directly that AI demand is “extremely strong,” raising the full-year revenue growth guidance from 30% to 40%. Capital expenditures were also increased to $60—64 billion, and the company announced an additional $100 billion investment in the United States.

However, the market’s reaction is thought-provoking. After the earnings were released, TSMC shares in the U.S. were down more than 5% in pre-market trading at one point. The other side of the standout performance is the continued swelling of capital expenditures eroding profit margins—its Q3 gross margin guidance has been lowered to 65%—67%. When “pickaxe sellers” have to put more and more of their profits into expanding mining sites, the market starts to reprice again: how long can the AI feast last?