Taiwan Semiconductor Manufacturing Co. is earmarking as much as $56 billion in capital spending for 2026, a stronger-than-anticipated projection that signals its confidence in the longevity of the global AI boom.

On Thursday, Taiwan Semiconductor Manufacturing Company (TSMC) reported record fourth-quarter earnings and said it expects AI chip demand to continue for years. During an earnings call, CEO C.C. Wei told investors that while he cannot predict the semiconductor industry’s long-term trajectory, he remains bullish on AI.

The AI boom just hit a constraint investors don't talk about enough: you can't ship what you can't build. Demand for AI chips is still surging, but the world's leading foundry, Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM),

On Thursday, the Donald Trump administration struck a trade agreement with Taiwan aimed at pulling hundreds of billions of dollars in semiconductor investment onto U.S. soil while easing tariff pressure on key Taiwanese exports.

TSMC just committed $56 billion to AI chip manufacturing capacity. That’s not money disappearing into factories. It’s money flooding into the equipment makers who build those factories. Three suppliers stand to capture the lion’s share of this windfall,

In the most recent quarter, Nvidia reported a 62% increase in revenue to $57 billion and spoke of soaring demand for its latest system, Blackwell Ultra. The company also has maintained high profitability on sales, with gross margin regularly surpassing 70%.

Taiwan Semiconductor Manufacturing Company's record Q4 results are boosting chip stocks as investors cheer new signs of AI strength.

Sunlit Arizona, a chemical supplier, purchased 40 acres in Casa Grande for $9.2 million to build a new manufacturing plant. This marks the 10th semiconductor supplier to establish operations in Casa Grande, following a trend started by Taiwan Semiconductor Manufacturing Co.'s investment in Arizona.

Taiwan Semiconductor Manufacturing Company Limited is rated a Buy due to strong Q4 earnings and guidance. Learn more about TSM stock here.

Shares in ASML and other semiconductor companies surged after Taiwan Semiconductor Manufacturing Co. said it planned $52 billion to $56 billion in capital expenditure this year.