TSMC reported its best quarter ever, with Q2 2026 revenue of $40.2 billion, a 36% jump year-over-year, and net profit of NT$706.56 billion, or roughly $21.99 billion, surging 77.4%. The company raised its full-year revenue growth outlook to slightly above 40% and hiked its 2026 capital expenditure guidance to between $60 billion and $64 billion, up from a previous estimate of $52 billion to $56 billion. Following the earnings release on July 16, TSMC shares fell approximately 4% in premarket trading, while NVIDIA dropped 1.3%, AMD slid 2.7%, Intel fell 1.9%, and Micron declined 2.4%. The selloff spilled into crypto-adjacent equities, with IREN, Cipher Mining (CIFR), and TeraWulf (WULF) all dropping between 4% and 5%. TSMC’s advanced nodes, including 2nm, 3nm, and 5nm processes, underpin major AI chips from NVIDIA, AMD, and hyperscalers like Google, Amazon, and Microsoft. The company is spending $60 billion to $64 billion this year to maintain that position, and while a 77% profit increase suggests the investment is paying off, the semiconductor industry overbuilt during the pandemic era, leading to inventory gluts in 2022. July