TSMC Stock Falls on Raised Capex Guidance, U.S. Chip Stocks Tumble July 16

According to CNBC, TSMC closed lower on July 16 despite record second-quarter profit, after the company raised its 2026 capital expenditure forecast to $60-64 billion from the prior guidance of $52-56 billion. The capex hike overshadowed strong earnings driven by surging artificial intelligence chip demand.

U.S. semiconductor stocks followed suit, with the VanEck Semiconductor ETF (SMH) down 2.65%, Arm Holdings plunging 5%, and SK Hynix ADR, Intel, AMD, and Qualcomm declining 6.76%, 2.91%, 3.27%, and 3.50% respectively. The Nasdaq-100 fell 1.03% to 25,994.58, while the S&P 500 dropped 0.47% to 7,537.01.