The entire U.S. chip industry got a major boost on Thursday, with shares of giants like Nvidia and AMD jumping after the world’s most important chipmaker, TSMC, reported blowout earnings. The strong results from the Taiwanese company are being seen as another clear sign that the artificial intelligence boom is still going strong.
NVIDIA, the undisputed leader in AI chips, saw its stock rise nearly 3%, while its smaller rival, AMD, jumped a whopping 6%. TSMC is the company that actually manufactures the chips for both Nvidia and AMD, so its success is a direct reflection of the massive demand for their products.
TSMC reported a massive 35% increase in its fourth-quarter profit, easily beating what Wall Street was expecting. The company also said it plans to spend even more on building new factories in 2026, a signal that it’s confident the AI-fueled demand won’t slow anytime soon. “We expect our business to be supported by continued strong demand for our leading-edge process technologies,” said TSMC’s finance chief.
The good news from TSMC rippled across the entire semiconductor sector. The VanEck Semiconductor ETF, which tracks the industry, rose 3.5%. Other major players, such as Broadcom, Micron, and Lam Research, also saw their stocks climb. The strong report from TSMC is a great start to the tech earnings season, which will really kick into high gear next week.
