AI narratives have reached the verification stage—can TSMC’s capex hold up against Nvidia’s expectations? Watch tonight’s earnings report release.

TSMC and ASML’s earnings reports will test the resilience of the AI market rally. Analysts expect significant market volatility. Capital expenditure and capacity-planning decisions by the two companies will be key clues. With market expectations for performance nearing their ceiling, the stock price is likely to pull back after the earnings are released; otherwise, it would support the sell-off trend. TSMC’s capital expenditure this year is seen as a focus for the NVIDIA supply chain, and UBS forecasts it could be as high as $60 billion, up to $60 billion.