Chip Stocks Fall 5% Despite TSMC's Record $22B Profit

TSMC posted record Q2 2026 net income of roughly US$21.98 billion, up 77% year-on-year and beating consensus by T$74 billion. Yet the PHLX Semiconductor Index fell 5% on July 16, 2026, with chip stocks declining globally. Investors focused on whether AI spending can sustain its pace, not on the earnings beat itself.