TSMC exceeded Q2 expectations and increased its capital expenditure, citing the urgent need for significantly more foundry space to produce AI chips. ASML reported strong revenue growth, with Intel utilizing its High-NA EUV technology to advance node maturity, while Aehr Test Systems also posted strong earnings due to the critical role of rigorous wafer burn-in testing for advanced AI chip packaging. NVIDIA formalized $30 billion in neo-cloud data center backstops, and a financial model suggests a potential two-year compute CapEx payback period for AI data centers.
Hyperscalers are locking in long-term compute capacity with NVIDIA, driving sustained capex for advanced foundry and packaging, tightening supply for others.