Chip equipment stocks soar after TSMC’s bullish forecast

Investing.com -- Chip equipment stocks led a sector-wide rally Thursday after Taiwan Semiconductor Manufacturing Co. announced a significant increase in capital expenditure plans and a robust revenue growth forecast for 2026.

Lam Research shares jumped 7%, Applied Materials surged 8%, KLA Corporation climbed 6%, and Teradyne rose 3% following TSMC’s announcement. The world’s largest contract chipmaker forecasted capital expenditure for 2026 of $52 billion to $56 billion, substantially exceeding analysts’ consensus estimate of approximately $46 billion.

TSMC also indicated that its capital expenditure would be "significantly higher" over the next three years compared to the $101 billion spent over the past three years. Additionally, the company projected revenue growth of close to 30% in 2026.

The positive outlook from TSMC rippled through the broader semiconductor sector. NVIDIA and AMD both gained 1%, while Broadcom rose 2%. Memory chip manufacturers also benefited, with Micron Technology climbing 3%, Western Digital advancing 3.6%, and Seagate adding 2%.

TSMC’s aggressive investment plans signal strong confidence in continued demand for advanced semiconductor manufacturing capacity, particularly as artificial intelligence applications drive the need for more sophisticated chips.

You May Also Be Interested In

• SpaceX files for 555.56M share IPO at $135/sh
• Darling Ingredients receives US patent for blood glucose collagen peptide
• Redwire Defense wins $15.9M Army contract for drone systems