Taiwan Semiconductor Manufacturing Co. expects a 27% increase in capital spending this year, reaching $52-56 billion. The company, a major player in AI chip manufacturing, reported a 35% profit surge and topped analysts’ estimates. Demand for AI chips remains strong, with companies like Amazon and Meta investing billions in AI infrastructure.

Counterpoint Research predicts 2026 will be a breakout year for AI server demand, driving chip demand across the server industry. TSMC’s continued growth suggests the AI market is not a bubble. Nvidia CEO notes high demand for H200 AI chips in China, indicating ongoing investment in AI innovation.

Analysts estimate hyperscaler AI companies will spend $527 billion in 2026. Concerns about an AI bubble persist, with tech executives and experts expressing varying levels of worry. Despite analyst underestimations, companies continue to invest heavily in AI technology, with TSMC and Nvidia leading the charge.

Read more at Yahoo Finance: AI Market Looks More Like Boom than Bubble After TSMC Earnings