---
title: "Understanding the Market | Chip Stocks Lead Gains, TSMC Achieves Record Profits for Five Consecutive Quarters, Significant Increase in Capital Expenditure Over the Next Three Years"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293148685.md"
description: "Chip stocks are among the top gainers, with Taiwan Semiconductor's net profit in the second quarter increasing by 77% year-on-year to a record level, and revenue meeting expectations. The company is optimistic about long-term growth in AI, expecting strong demand before 2030, with dollar revenue growth exceeding 40% in 2026, and will significantly increase capital expenditures over the next three years to expand investments in advanced processes and packaging"
datetime: "2026-07-20T01:52:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293148685.md)
  - [en](https://longbridge.com/en/news/293148685.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293148685.md)
generator: "portal-rs"
---

# Understanding the Market | Chip Stocks Lead Gains, TSMC Achieves Record Profits for Five Consecutive Quarters, Significant Increase in Capital Expenditure Over the Next Three Years

According to Zhitong Finance APP, chip stocks are leading the gains. As of the time of publication, Jinghe Integrated (02249) rose by 4.39%, trading at HKD 30.46; Huahong Hongli (01347) increased by 3.97%, trading at HKD 144.3; Shanghai Fudan (01385) climbed by 3.16%, trading at HKD 26.08; and SMIC (00981) rose by 2.88%, trading at HKD 69.55.

In terms of news, TSMC recently announced its second-quarter results, achieving record profits for the fifth consecutive quarter, further validating its judgment on the long-term growth trend of the AI industry. During the period, net profit reached NT$ 706.56 billion (approximately USD 21.98 billion), a year-on-year increase of 77%, exceeding the market expectation of NT$ 624 billion. The company's second-quarter revenue reached NT$ 1.27 trillion, a year-on-year increase of 36%, in line with the previously provided performance guidance.

TSMC stated that the business outlook for the next few years is very optimistic and expects that market demand will remain strong until 2030, with an overall growth trend expected to be very robust. The company anticipates that revenue growth in USD terms will slightly exceed 40% by 2026, higher than the previous expectation of "over 30%." In response to the growing demand for AI chips, TSMC plans to further expand investments in advanced processes and advanced packaging. The company expects that capital expenditures over the next three years will significantly exceed those of the past three years

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**