By Nauman Khan
Publication Date: 2026-01-15 11:52:00
This article first appeared on GuruFocus.
Chip stocks rose in early trading after Taiwan Semiconductor (NYSE:TSM) posted stronger-than-expected fourth-quarter results, with net profit of NT$506 billion (US$16 billion) and revenue of $33.73 billion, up about 25% year-on-year.
U.S. semiconductor equipment stocks gained as well. Teradyne (NASDAQ:TER) rose about 5%, Lam Research (LRCX) about 6%, Applied Materials (NASDAQ:AMAT) about 6%, KLA Corp (NASDAQ:KLAC) about 5%, and Photronics (PLAB) edged about 1%.
Chipmakers also advanced premarket: Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) about 2%, Micron (NASDAQ:MU) about 3%, Broadcom (AVGO) about 2%, Astera Labs (ALAB) about 3%, and Qualcomm (QCOM) about 1%.
Analysts said the earnings beat and higher capex plan signal continued demand for advanced chips, especially for AI and high-performance computing, which could support suppliers throughout 2026.
