TSMC stock surges 4.44% on robust earnings and 56B CapEx plan

Taiwan Semiconductor Manufacturing Co. (TSMC) surged 4.44% in pre-market trading on Jan. 16, 2026, driven by robust earnings and a bold $56 billion capital expenditure plan. The stock’s gains mirrored a broader semiconductor sector rally as investors reacted to the company’s record-breaking fourth-quarter results.

TSMC reported a historic quarterly profit of $16 billion on revenue exceeding $33 billion, with its High-Performance Computing segment—dominated by AI chips—accounting for 58% of sales. The company also announced a 2026 CapEx budget of $52–$56 billion, signaling sustained demand for advanced manufacturing capacity. This outlook bolstered confidence in the AI-driven semiconductor cycle, lifting peers like Applied Materials and Lam Research by over 5% pre-market.

The rally underscored TSMC’s role as a bellwether for tech-sector momentum. Its guidance for 2nm mass production and expanded U.S. manufacturing plans reinforced optimism about long-term growth. Meanwhile, the broader market shifted toward undervalued sectors, with industrial and materials indices hitting multi-month highs. TSMC’s performance helped quiet skepticism about overvaluation in AI-linked stocks, as its results validated the sector’s expansion trajectory.