TSMC and ASML's positive outlook suggests major tech firms will continue to invest heavily in AI chips and data centers. Spending is expected to surpass $600 billion this year, driven by capacity constraints and demand from hyperscalers like Microsoft and Amazon.

Elon Musk's Terafab project seeks to revolutionize chip manufacturing with $20-25 billion investment, targeting 1 terawatt capacity by 2029. While stock prices surged, analysts raise concerns about its feasibility, estimating costs could reach $5-13 trillion.

ASML raised its 2026 revenue forecast to €360-400 billion, driven by high demand for advanced chips due to AI investments. Q1 2026 results showed net sales of €8.8 billion. Strong growth in both EUV and non-EUV systems is expected, alongside increased dividends and share repurchases.

ASML CEO Christophe Fouquet reported increased chip demand surpassing supply, leading customers to expedite capacity expansion plans for 2026 and beyond, with strong order intake and heightened expectations for ASML products.