The weekend is almost here—take a moment to read the earnings report!

TSMC’s (TSM) second-quarter earnings overall met market expectations, and it also raised its full-year revenue and capital expenditure forecasts, indicating that AI demand remains strong
The company will continue to adopt a relatively steady pricing strategy, while accelerating expansion in the U.S. state of Arizona and strengthening its advanced packaging efforts to meet future AI customer needs
However, due to ongoing increases in capital expenditures along with a more conservative pricing strategy, profit margins in the next few quarters may not expand significantly, so there is relatively limited room for valuation improvement in the short term
ASML’s second-quarter earnings, meanwhile, were clearly better than market expectations, with revenue reaching €9.3 billion and a gross margin of 54%, both higher than the company’s previous guidance
At the same time, the company raised its full-year 2026 revenue outlook to €43 billion to €45 billion, mainly benefiting from continued growth in customer demand for AI-driven logic chips and memory chips
In addition, ASML plans to increase annual production capacity of EUV and DUV immersion lithography machines by about 30% before 2027, and is also expected to expand further in 2028—overall, its growth outlook remains optimistic
Overall, demand across the AI industry chain is still very strong. ASML continues to benefit from rising demand for advanced process equipment, while TSMC chooses to prioritize expanding capacity and consolidating its long-term competitive advantage; even if short-term profit margins face pressure, it is laying the groundwork for growth in the coming years