The earnings report was outstanding, yet the stock still dropped. TSM’s revenue grew 40% over the past three months—good news was already priced in. The only new information the market cares about: capex increased from $50 billion to over $60 billion. Short-term pricing focuses on “how many years to recoup this investment”—that’s perfectly reasonable. But in the contract manufacturing industry, capacity equals market share—if you don’t expand today, the orders that spill over in three years will go to someone else. So this $8 billion increase isn’t a sign of optimism about demand—it’s a move to leave no room for competitors. The same applies to memory: price increases have simply been absorbed; supply constraints aren’t new this quarter.