HK Stock Market Move | The chip sector saw the biggest gains, with Taiwan Semiconductor Manufacturing Company (TSMC) posting record profits for five consecutive quarters. Capital expenditures are expected to significantly increase in the next three years.

Chip stocks lead the gains. As of the time of writing, Nexchip Semiconductor Corporation (02249) rose by 4.39% to 30.46 Hong Kong dollars; Hua Hong Grace Semiconductor (01347) rose by 3.97% to 144.3 Hong Kong dollars; SHANGHAI FUDAN (01385) rose by 3.16% to 26.08 Hong Kong dollars; Semiconductor Manufacturing International Corporation(00981) rose by 2.88% to 69.55 Hong Kong dollars. In terms of news, TSMC recently announced its second-quarter performance, achieving record profits for the fifth consecutive quarter, further confirming its long-term growth trend for the AI industry. The net profit for the period reached 706.56 billion New Taiwan dollars (approximately 21.98 billion U.S. dollars), a year-on-year increase of 77%, higher than the market's expectation of 624 billion New Taiwan dollars. The company's second-quarter revenue reached 1.27 trillion New Taiwan dollars, a year-on-year increase of 36%, in line with the performance guidance given earlier. TSMC stated that the business outlook for the coming years is very optimistic, and it is expected that market demand will remain strong until 2030, with overall growth trends being very robust. The company expects revenue growth in US dollars to slightly exceed 40% by 2026, higher than the previous expectation of "over 30%". In response to the growing demand for AI chips, TSMC plans to further expand investments in advanced processes and advanced packaging. The company expects capital expenditures for the next three years to be significantly higher than those of the past three years.