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US stock futures climbed on Thursday, signaling a recovery from back-to-back losses as chip linchpin TSMC’s strong outlook boosted AI hopes in the wait for more big bank earnings.
Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.8% to lead the way higher, with those on the S&P 500 (ES=F) up roughly 0.4%. Dow Jones Industrial Average futures (YM=F) added 0.1% following a second straight day of losses for the Wall Street indexes.
TSMC, the world’s largest contract chipmaker, posted a 35% jump in fourth quarter profit on Thursday thanks to the AI boom. The major supplier to Nvidia (NVDA) and Apple (AAPL) said it plans to ramp up investment to $56 billion in 2026, a sign of confidence in sustained Big Tech spending on AI buildouts. Shares in the Taiwanese company jumped, stoking a rally in chip-related stocks such as ASML (ASML).
The mood marks a reversal after tech led stocks lower on Wednesday, which dragged on indexes and promised to revive a weeks-long rotation out of megacaps into value names.
In another boost to the market, oil prices sank amid signs the US is backing away from a military response in Iran. President Trump said Wednesday he had been told authorities there will stop killing protesters.
Silver (SI=F) prices also fell, putting the brakes on an explosive record-setting rally that pushed the metal’s total market value above $5 trillion for the first time. The retreat came after Trump said the US will hold off from putting import tariffs on critical minerals, a risk that contributed to a buildup in US inventories and supply squeeze that boosted silver prices.
Looking ahead, investors are watching for a fresh batch of earnings, with results from big banks Goldman Sachs (GS), Morgan Stanley (MS), and BlackRock (BLK) due before the bell. On the economic front, an update on weekly jobless claims is on the docket.
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ASM’s market cap soars above $500 billion on TSMC’s upbeat outlook
ASML (ASML, ASML.AS) shares soared over 7% to a record high in Amsterdam, sending its market value beyond $500 billion, after its key customer TSMC gave a stronger-than-anticipated outlook for 2026.
Meanwhile, the Dutch semiconductor equipment maker’s US-listed stock also popped after the Taiwanese contract chipmaking giant’s strong Q4 earnings, up over 4% in premarket.
Bloomberg reports:
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TSMC to ramp up spending as profit jumps 35% on AI boost
Shares of TSMC (TSM, 2330.TW) rose early Thursday after the world’s biggest contract chipmaker posted a forecast-smashing 35% jump in fourth quarter profit thanks to the AI boom.
The company also predicted robust growth in 2026 and said it plans to increase investment, hinting that more US factories are in the works.
Riding high on what it calls the “AI mega trend”, TSMC said its customers were “providing strong signals” and reaching out directly to request capacity, per Reuters.
AP reported:
Taiwan Semiconductor Manufacturing Corp., a major supplier to companies including Nvidia and Apple, reported a net profit of 506 billion new Taiwan dollars ($16 billion) for the October-December quarter, a 35% surge from a year earlier, better than analysts’ estimates.
TSMC said Thursday that its revenue in the last quarter increased 21% from a year earlier to more than 1.046 trillion new Taiwan dollars ($33 billion).
TSMC said it plans to boost its capital expenditure budget to $52 billion-$56 billion for 2026, up from about $40 billion last year. The company’s shares have climbed more than 8% since the beginning of the year, reflecting its strong position in the AI-driven market.
… “We expect our business to be supported by continuous strong demand for our leading edge process technologies,” Wendell Huang, TSMC’s chief financial officer, said in a conference call. He said spending would be “significantly higher” in the next three years.
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Microsoft to set record with soil credit purchase to offset data centers
Reuters reports:
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Oil prices drop after Trump indicates the US will not intervene in Iran’s attack on civilians
Bloomberg reports:
Oil fell for the first time in six days after US President Donald Trump signaled he may hold off on attacking Iran for now.
Brent (BZ=F) dropped as much as 2.9% to trade below $65 a barrel after gaining about 11% over the past week while West Texas Intermediate (CL=F) was near $60. Trump said he’d been assured that Iran would stop killing protesters, reducing the likelihood of an immediate US military response to the demonstrations against the government of Supreme Leader Ayatollah Ali Khamenei and of disruptions to Iranian production and key shipping lanes.
Elsewhere, US government data showed nationwide crude stockpiles rose 3.4 million barrels last week — the largest build since early November. The rising inventories, more Venezuelan oil heading to the US, plus a disruption at a key terminal in the Black Sea has pushed WTI to near the deepest discount in 15 months relative to Brent.
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