TSMC’s Record Earnings Fuel Rally in Chip Stocks, Signaling Broader Tech Optimism
Taiwan Semiconductor Manufacturing Co. shattered expectations with fourth-quarter revenue of $33.73 billion and earnings of $3.14 per share, sending its stock soaring 6% to record highs. The Ripple effect lifted the entire semiconductor sector, with Nvidia, AMD, and ASML shares climbing in tandem.
TSMC's 35% annual profit growth underscores the insatiable demand for AI chips and cutting-edge process technologies. The chipmaker's planned capital expenditure increases through 2026 suggest confidence in sustained growth—a sentiment reflected in the VanEck Semiconductor ETF's 2% gain.