Taiwan Semiconductor (NYSE:TSM) nudged down around 4% in pre-market trading despite quarterly results delivering a 77.4% jump in net income, ahead of expectations and a new company record, as the Team Hidden Gems recommendation continues to benefit from the global AI buildout.
"The AI megatrend continues to drive the need for more and more computation": Chairman C.C. Wei was upbeat on the earnings call. Capex for the full year was increased from the $52 billion-$56 billion range to $60 billion-$64 billion, with revenue growth now projected slightly above 40%, up from more than 30% previously.
An additional $100 billion allocated to expand U.S. chipmaking capacity: The extra money will be used to build four chip plants, taking the total investment plan in the U.S. to $265 billion. The plants would produce the most commercially advanced available logic chips.