TSMC reported Q4 earnings with about 35% profit growth and said it plans to increase capital spending in 2026. That suggests demand for advanced chips, especially for AI workloads, is still strong.
Market reaction was positive across the semiconductor space:
NVDA +3%
AMD +6%
AVGO +2%
MU +3%
LRCX +6.5%
SMH ETF +3.5%
Since TSMC manufactures chips for companies like Nvidia, AMD, and Broadcom, investors seem to be pricing in continued strength in the AI-related supply chain.
Intel reports earnings next week, which could give a better idea of whether this momentum continues or starts to cool off.
No positions, just watching the sector.