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

TSMC reported Q2 2026 net income of roughly US$21.98 billion, up 77% year-on-year and beating analyst forecasts by T$74 billion. Yet the PHLX Semiconductor Index fell 5% on July 16, 2026, dragging chip stocks down globally. Investors looked past the earnings beat, focusing on whether AI spending can keep up its current pace.