AI Market Looks More Like Boom than Bubble After TSMC Earnings

Group 1 - Taiwan Semiconductor Manufacturing Co. (TSMC) predicts a capital spending increase of at least 27% this year, reaching between $52 billion and $56 billion, driven by strong demand for advanced process technologies [1] - TSMC's profit surged 35% to a record high, exceeding analysts' expectations, positioning the company as a key beneficiary of tech giants' investments in artificial intelligence [2] - Counterpoint Research indicates that 2026 will be a "breakout year" for AI server demand, with strong overall chip demand across the server industry [3] Group 2 - Concerns about a potential AI bubble exist, with insights from 40 tech executives and analysts highlighting a range of worries about the sustainability of AI investments [4] - Nvidia's CEO reported high customer demand for AI chips in China, with exports recently approved, indicating robust market interest [6] - Wall Street analysts have raised their consensus estimate for hyperscaler AI companies' 2026 capital spending from $465 billion to $527 billion, suggesting that previous estimates have underestimated AI-related capital expenditures [6]