TSMC Raises 2026 Capex to $54 Billion, Prompting Investors to Buy Seagate

Overview

• TSMC told customers it has received larger capacity requests and set 2026 capital spending at $54 billion, a materially higher plan than consensus that supports faster AI‑accelerator production.
• Sands Capital cited TSMC’s guidance in its Q1 2026 Select Growth letter and repositioned the fund toward asset‑heavy infrastructure by initiating holdings in Seagate and Lam Research.
• Sands’ Select Growth Strategy underperformed the Russell 1000 Growth Index in Q1, returning -12.9 percent versus -9.8 percent as markets rotated into capital‑intensive sectors.
• Sands argues Seagate will benefit from rising AI storage needs, constrained supply, and its Mozaic HAMR technology that increases drive density and lowers cost per byte versus flash.
• The shift reflects a wider market trend where growing AI workloads push spending to foundries and mass‑capacity storage, a dynamic that could support higher capex, steadier pricing, and longer procurement cycles for data centers.