US Stock Market Outlook: TSMC Earnings Boost AI Investments; Semiconductor Stocks Surge

US Stock Futures Rise Ahead of Thursday Trading

US stock index futures showed positive movement on Thursday morning, with the Dow futures up 0.02%, Nasdaq futures rising 0.85%, and S&P 500 futures increasing by 0.37%.

Tech Stocks Surge Pre-Market

Prominent tech stocks experienced a collective rise before the market opened. Notably, TSMC (TSM) and ASML (ASML) surged over 6%, while Micron Technology (MU) rose more than 3%. AMD and Broadcom both saw increases exceeding 2%.

Mixed Performance for Chinese Stocks

Chinese stocks had a mixed performance pre-market. ASE Technology (ASX) rose over 4%, while Trip.com (TCOM) fell more than 4%.

Semiconductor Sector Boosted by TSMC Earnings

TSMC's better-than-expected earnings report led to a rally in semiconductor equipment and materials stocks. Notable gains included Applied Materials (AMAT) and Lam Research (LRCX), both up over 7%, while Entegris (ENTG) and Onto Innovation (ONTO) rose more than 8%.

Wells Fargo Raises Price Targets

Wells Fargo raised price targets for several semiconductor stocks, including SanDisk (SNDK) and Texas Instruments (TXN). SanDisk's target was increased from $230 to $380, while Micron's target rose from $335 to $410.

TSMC Reports Strong Q4 Earnings

TSMC reported a 35% increase in profits for Q4, driven by strong demand for AI chips. The company expects significant capital expenditure increases over the next three years.

BlackRock Exceeds Q4 Earnings Expectations

BlackRock (BLK) reported a 23% year-over-year revenue increase, reaching $7 billion, with adjusted earnings per share of $13.16, surpassing market expectations.

Goldman Sachs and Morgan Stanley Q4 Results

Goldman Sachs (GS) saw a 3% decline in net revenue, while Morgan Stanley (MS) reported Q4 net revenue of $17.89 billion, exceeding expectations.

Alibaba Launches Qianwen App

Alibaba (BABA) announced the launch of its Qianwen App, integrating various services like Taobao and Alipay.

Amazon and Rio Tinto Copper Supply Agreement

Amazon (AMZN) has entered a two-year supply agreement with Rio Tinto (RIO) to procure copper for AI data centers.

Market Reactions to Geopolitical Developments

Oil prices fell over 4% amid easing tensions in Iran, impacting energy exploration and development stocks.

Conclusion

Overall, the pre-market activity reflects a positive sentiment in the tech sector, driven by strong earnings reports and strategic partnerships, while geopolitical factors continue to influence market dynamics.