New York, Jan 16, 2026, 10:03 EST — Regular session
Shares of Taiwan Semiconductor Manufacturing Co, listed in the U.S., climbed roughly 2% to $348.48 Friday morning. The move pushed the chip sector’s rebound further after a patchy stretch for U.S. stocks earlier in the week.
This matters because investors view TSMC as the clearest indicator of demand for artificial-intelligence hardware and the industry’s spending appetite to satisfy it. When TSMC’s stock shifts, the broader chip sector usually takes note.
The start of earnings season is here, and guidance is stealing the spotlight from past quarter results. Traders are weighing if megacap tech will reclaim the lead or if gains will keep broadening across sectors.
TSMC reported a 35% jump in fourth-quarter profit, hitting a record high, and projected its 2026 revenue to rise nearly 30% in U.S. dollars, boosted by what it described as an “AI mega trend.” The chipmaker plans capital expenditures between $52 billion and $56 billion this year and signaled increased U.S. manufacturing, with CEO C.C. Wei noting that recent land purchases in Arizona “give you a hint” about its expansion. When asked about concerns over an AI bubble, Wei admitted the company was “very nervous” about such heavy spending, cautioning that any misstep “would be a disaster.” 1
TSMC’s U.S.-listed shares surged 4.4% on Thursday, pushing the Philadelphia semiconductor index up 1.8%. Nvidia, Broadcom, and Applied Materials also climbed. Alan Lancz, president of Alan B. Lancz & Associates, said the Taiwan news helped “squash” some valuation concerns around tech. Jake Dollarhide, CEO of Longbow Asset Management, noted investors remain drawn to what they consider undervalued tech stocks. 2
U.S. indexes kicked off Friday on a positive note, with the Nasdaq gaining 0.47% at the open and the S&P 500 rising 0.23%. The early momentum stayed constructive as investors prepared for a fresh batch of earnings reports. 3
TSMC faces the same lingering question: how long will the spending cycle last before demand falters? The company is pushing ahead with expansion, not slowing down, which usually lifts the entire supply chain.
Even so, a capital plan running into the tens of billions offers slim room for mistakes. Any dip in orders, pressure on pricing, or sudden policy changes on cross-border chip sales might quickly transform new capacity from a boon into a burden.
The calendar offers the next pause: U.S. markets shut Monday for Martin Luther King Jr. Day, reopening Tuesday. 4
Tuesday will see Netflix release its quarterly earnings, offering an early glimpse into consumer-facing results as earnings season ramps up. 5
