March S&P 500 E-Mini futures (ESH26) are up +0.37%, and March Nasdaq 100 E-Mini futures (NQH26) are up +0.74% this morning after Taiwan Semiconductor Manufacturing Co. renewed confidence in the sustainability of AI demand.
U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM) jumped over +5% in pre-market trading after the world’s biggest contract chipmaker posted a record Q4 profit and projected faster-than-expected 2026 revenue growth. The biggest surprise was TSMC’s annual capital expenditure forecast for this year, set at $52 billion to $56 billion, well above its $40.9 billion capex for 2025. TSMC’s chief executive, C.C. Wei, said at an earnings call that the decision to ramp up spending came after months of checks with major customers and reflects confirmed AI-driven demand. “When you’ve got a business like TSMC spending at this level, investors should be prepared for sustained AI demand rather than a short-lived boom,” said Zavier Wong, market analyst at eToro. AI-related U.S. heavyweights advanced in pre-market trading, with Broadcom (AVGO) rising over +2% and Nvidia (NVDA) gaining more than +1%. TSMC suppliers Applied Materials (AMAT) and Lam Research (LRCX) climbed more than +6% in pre-market trading.
