BREAKING STORYBULLISHPublished 18 Oct 2026

ASML's Record Quarter and TSMC's $64 Billion Capex Point to AI Chip Demand Still Outrunning Supply

Two of the chip industry's most critical suppliers both signaled multi-year demand strength rather than a near-term slowdown.

Earnings AI & SemiconductorsASML TSM

Executive takeaway

TSMC is spending up to $64 billion this year on capital expenditure, while ASML delivered what was described as record results with improved guidance.

ASML and TSMC Shares Track Together on AI Demand. Both companies sit at opposite ends of the chip supply chain, and their stock paths over the past three months show whether investors are pricing in the same multi-year demand strength described in their results. — ASML and TSMC Shares Track Together on AI Demand
Both companies sit at opposite ends of the chip supply chain, and their stock paths over the past three months show whether investors are pricing in the same multi-year demand strength described in their results.
Live market prices for ASML and TSM.

ASML, the Dutch maker of lithography machines used to manufacture advanced chips, delivered record results along with improved forward guidance, according to reporting that called the company the most important player in the AI supply chain. Separately, Taiwan Semiconductor Manufacturing Company is spending up to $64 billion this year on capital expenditure, a figure cited as evidence of strong, multi-year customer demand rather than a short-term spending cycle. Both data points matter because ASML and TSMC sit at opposite ends of the same chain: ASML sells the equipment chipmakers need, and TSMC uses that equipment to manufacture chips for Nvidia, Apple and other major customers. Strength at both ends suggests the current AI buildout has not yet run into a capacity or spending ceiling. What is unresolved is how durable this spending pace is. One commentary argued separately that the

What would change this view

If TSMC's actual 2026 capital expenditure comes in below the $64 billion figure it has guided to, indicating AI chip demand is cooling faster than expected.

Wire sources cited

The Motley FoolTSMC Is Spending up to $64 Billion This Year. Here's Why That's Great News for Investors.
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Seeking Alpha — All ArticlesTSMC: The Easy Money Is Gone
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The Motley FoolASML is the Most Important Company in the AI Ecosystem, and It Just Delivered Record Results. Here’s Where the Stock Will Be in 2028
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Produced automatically by the INDY NEWS Desk from the public wire sources cited above, and checked against them before publication. Market commentary, not investment advice.