TSM Stock: Why TSMC's Record Q2 Revenue Sparked a Sell-Off

The selected ticker is TSMC, which is a real asset listed on the NASDAQ.
The matched catalog id is strategy_001, which is a strategy that follows sustained price strength and aligns with the article's focus on TSMC's performance.
The selected time range is 3 (5-year backtest window), as the article discusses long-term capital allocation and performance metrics.

Here is the final output:

• TSMC reported a record $40.2 billion in Q2 2026 revenue, a 36% year-over-year increase that hit the top of its guidance range.
• The company achieved a record 67.7% gross margin and $22 billion in net income, with advanced nodes accounting for 77% of wafer revenue.

• Despite the strong financials, TSMC stock declined more than 8% over two days following a significant increase in capital expenditure guidance.

• The market is currently prioritizing margin preservation and free cash flow sustainability over pure growth acceleration at this scale.

• TSMC raised its 2026 capex budget to $60–$64 billion, up from $52–$56 billion, signaling heavy spending on AI capacity and Arizona manufacturing.