Analysis points out that the Philadelphia Semiconductor Index has fallen over 22% from last month's high, but TSMC (TSM) remains a chip stock to watch. The company recently raised its 2026 capital expenditure guidance by $8 billion to $62 billion and expects significant growth in the coming years.

The analysis emphasizes that despite the recent pullback in the semiconductor sector, TSMC, the world's largest contract chipmaker, holds investment value due to its technological leadership and scale advantages. TSMC recently raised the midpoint of its full-year capital expenditure guidance for 2026 by $8 billion to $62 billion and stated that this figure will significantly increase in the coming years. Furthermore, TSMC had already increased prices for its most advanced processes at the beginning of the year and plans to raise prices annually in the future, while also increasing its full-year revenue outlook to slightly above 40%, up from the previously expected 30%.