TSMC's U.S.-listed shares surge 4.44% on record quarterly results driving AI chip demand

TSMC's U.S.-listed shares surged 4.44% in pre-market trading on Jan. 16, 2026, following record quarterly results that underscored sustained demand for AI chips.

The chipmaker reported NT$1.01 trillion in revenue and NT$505 billion in net profit, both exceeding Wall Street estimates. CEO C.C. Wei highlighted a 25%+ increase in 2026 capital spending, driving optimism for equipment suppliers like Applied Materials and KLA Corp., which saw double-digit gains. The results reinforced confidence in AI-driven growth, with analysts noting the shift from speculative bets to earnings-backed investments in the sector.

Investor sentiment turned decisively bullish as TSMC’s HPC segment—dominated by AI accelerators—accounted for 58% of total sales. This marked a structural shift from smartphone-led growth. Wedbush analysts emphasized that 2026 will prioritize monetization, with AI-focused firms like NVIDIA and AMD benefiting most from TSMC’s capacity expansion plans.

The rally extended to broader tech indices, with the PHLX Semiconductor Index rising 12% year-to-date. However, software giants faced pressure amid concerns about adapting to AI-native competition. TSMC’s leadership in 2nm production and global manufacturing expansion further solidified its role as the cornerstone of the AI era, signaling prolonged strength in advanced chip demand.