According to CoinMeta, in its investor letter for the second quarter of 2026, Eagle Capital Management pointed out that TSMC (TSM) has potential for long-term growth but may face pressures during the next economic downturn. Eagle Capital emphasized that while the enthusiasm for capital expenditure in artificial intelligence has driven strong earnings growth in the S&P 500, it has also increased risks stemming from high valuations, concentrated demand, and aggressive investment assumptions. The firm believes that current earnings may overstate the underlying economic conditions, as the depreciation period for semiconductor equipment is several years long, and free cash flow growth remains weak. Eagle Capital predicts that as competition intensifies and capacity increases in the fields of AI laboratories, hyperscale data centers, and semiconductors, there will be winners and losers in the market.