TSMC Plans $56 Billion Capex for 2026, Boosting Semiconductor Equipment Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: NASDAQ.COM
- Surge in Capex: TSMC announced plans for capital expenditures between $52 billion and $56 billion for 2026, significantly up from $41 billion in 2025, indicating strong demand for advanced semiconductor manufacturing and driving growth for related equipment manufacturers.
- Clear Industry Trend: TSMC's announcement led to a broad increase in S&P 500 semiconductor equipment stocks, with Applied Materials rising 8%, Lam Research up 7%, KLA increasing by 6%, and Teradyne climbing 3%, reflecting optimistic market expectations for semiconductor equipment demand.
- Massive Market Potential: The semiconductor industry is projected to grow from a valuation of $630 billion to $680 billion in 2024 to between $1.5 trillion and $1.8 trillion by 2030, primarily driven by surging demand for AI and data centers, highlighting the industry's long-term growth potential.
- Emerging Investment Opportunities: As chipmakers ramp up their investments in equipment, stocks like Applied Materials are seen as promising investment opportunities, with analysts suggesting that investors should consider these stocks for potential high returns.
Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMAT is 288.05 USD with a low forecast of 190.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 319.460
Low
190.00
Averages
288.05
High
425.00
Current: 319.460
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
