Chips Are Back, Baby: TSMC Earnings Send Tech Soaring

😎 Market Vibes

📈 Chips Are Back, Baby: TSMC Earnings Send Tech Soaring

If you were worried that the AI trade was dead after two days of selling, TSMC just slapped those fears into next week. The chip giant reported a 35% surge in fourth-quarter profits and announced plans to drop up to $56 billion on capital spending in 2026, because apparently when you're the world's largest contract chipmaker, you print money faster than the Fed during a crisis.

TSMC shares jumped over 6% in today's session, dragging the entire semiconductor sector along for the ride. The S&P 500 climbed 0.6% to close around 6,963, while the Nasdaq powered 0.9% higher to 23,710. Even the Dow managed to add 165 points, though let's be honest - it's basically just along for the ride at this point.

Nvidia, AMD, and Micron all bounced back after getting hammered yesterday, with chip equipment maker ASML soaring 6.7% on the news that TSMC plans to keep spending like there's no tomorrow. When TSMC says customers are "providing strong signals" and begging for capacity, you know the AI buildout is far from over.

_^[sponsored]
Our partners at TradeSmith have uncovered something fascinating that most investors miss… they wanted to share it with our readers: Did you know the S&P 500 has a 100% history of soaring, beginning on one particular date every year? We call this “The Green Day Phenomenon.” It works on 5,000 stocks.

For example, Nvidia has a 93% history of soaring beginning every January 26. This has held true for 15 years, through bull and bear markets.

Click here to see the green days for 5 major stocks today.
^{_{Clicking the link above will opt you into communication from TradeSmith, including the TradeSmith Daily daily E-Letter. (Privacy Policy)}}

🏦 Goldman Crushes It While Other Banks Stumble

In a week where most big banks reported earnings that made investors collectively yawn or wince, Goldman Sachs crushed expectations as dealmaking stayed strong, bucking the downward trend that sent Wells Fargo, Bank of America, and JPMorgan into the penalty box earlier this week.

BlackRock also joined the winners' circle, pulling in $342 billion of total client cash in Q4 and pushing the company to a record $14 trillion in assets under management. When you're managing more money than some countries' entire GDP, you've basically won capitalism.

The divergence is telling: Goldman's ability to capitalize on M&A activity while retail-focused banks struggle with Trump's proposed 10% credit card fee cap shows that not all financial stocks are created equal. Meanwhile, Morgan Stanley reported solid results before the bell, keeping the investment banking momentum alive.

^_[sponsored]
Our partners at The Oxford Club have identified what they're claiming could be the next Trillion Dollar Company. It just signed a deal to get its tech in Apple's iPhone until 2040! Online commenters are debating if this brand-new company will be the 7th trillion dollar stock. Details on the controversy here.

📉 Jobs Market Refuses to Crack: Jobless Claims Plunge

The labor market is like that friend who keeps showing up to parties uninvited - except in this case, the economy actually wants it there. Initial jobless claims dropped to 198,000 for the week ending January 10, blowing past the expected 215,000 and hitting the lowest level since last April.

Sure, economists are quick to point out that seasonal adjustment challenges around the holidays make the data noisy. But when the four-week moving average falls to 205,000 - the lowest since January 2024 - you can't just wave that away as statistical noise.

Adding fuel to the fire, both the Empire State Manufacturing Index and Philadelphia Fed manufacturing index came in significantly better than expected. The Philly Fed reading jumped to 12.6 from -8.8 the prior month, destroying the forecast of -4.5. When manufacturing data swings that hard in a positive direction, it's worth paying attention.

This creates an interesting situation for the Fed. Inflation is moderating, but the labor market refuses to cool off enough to justify aggressive rate cuts. No wonder traders are split on whether we'll see two or three cuts this year.

^_[sponsored]
Our partners at DiversifiedTradingInstitute are sharing that if you’ve been searching for a reliable way to pull cash from the market without obsessing over every market drop, fed whisper, or policy shift coming out of D.C… This deserves your attention.

Every single day, the market triggers a strange, repeatable phenomenon… a narrow trading window that can open the door to next-day payouts. So if consistency is what you’ve been missing, this is not something you want to sit on. They've broken down the full setup right here.

🧊 Bitcoin Bounces Back Above $97K While Metals Cool Off

After consolidating in the low-$90K range for what felt like an eternity, Bitcoin finally pushed past $97,000, up roughly 1.4% on the day, as whales continued their accumulation spree. Market data shows addresses holding between 100 and 10,000 BTC added nearly 32,700 coins since January 10, while retail continued selling - which is honestly the most bullish setup you could ask for.

The bounce came as broader crypto sentiment improved, though the real story might be what's happening behind the scenes. Institutional buyers aren't just dipping their toes in the water - they're cannonballing into the pool. With Polymarket now estimating a 73% chance Bitcoin hits $100K in January, the question isn't if we break six figures, but when.

On the precious metals front, gold and silver both took a breather after their absolutely bonkers rally. Gold pulled back to around $4,590 per ounce after Trump signaled he'd take a wait-and-see approach on Iran, easing some of that safe-haven bid. Silver tumbled about 6% to below $88 after the president said he'd negotiate trade agreements on critical minerals instead of imposing tariffs.

Still, don't mistake a pullback for the end of the metals rally. Gold is up 7% year-to-date and 70% compared to last year, while silver has already gained 26.6% since January 1st. When Citigroup analysts are calling for $5,000 gold and $100 silver, you know the structural bull case remains intact.

^_[sponsored]
If you want to understand how institutions like BlackRock generate billions in revenue regardless of market direction, Tan Gera, from our partners at Decentralized Masters, has reverse-engineered their approach. Tan developed a three-phase system that collects fees from trading volume, not price movement. Click here to access the full breakdown showing how this system works.

🎭 Trump Tariff Theatrics Continue (Markets Mostly Shrug)

President Trump signed a proclamation imposing a 25% tariff on certain semiconductors - but don't panic just yet. The levy won't apply to chips imported to support the U.S. technology supply chain buildout, which is basically every important chip coming into the country. It's the legislative equivalent of "I'm going to be really tough on this thing, except for when I'm not."

The bigger geopolitical drama involves Greenland, where a White House meeting between U.S., Danish, and Greenlandic officials ended with what diplomats politely called "fundamental disagreement." Trump doubled down on social media, stating anything less than Greenland becoming part of the U.S. is "unacceptable," which has to be wild for Denmark to read over morning coffee.

Meanwhile, Trump signaled he might hold off on attacking Iran after receiving assurances about protesters, and he's backing away from immediate critical minerals tariffs in favor of negotiations. The result? Markets took the tariff talk mostly in stride, focusing instead on solid earnings and economic data.

The stock market has become remarkably good at pricing in Trump's negotiating tactics - which typically involve threatening maximum action before settling for something more reasonable. This pattern recognition is why equities hit all-time highs earlier this week despite enough geopolitical drama to fill a Tom Clancy novel.

^_[sponsored]
Our partners at StockEarnings understand that most traders are looking for dependable income while markets stay unpredictable. That’s why their latest report reveals 3 high-yield stocks delivering powerful cash flow today. Here’s a quick preview:

• Stock #1: A midstream energy leader generating $4.6B FCF with a 7.3% dividend.

• Stock #2: A consumer-staples icon producing $7.5B FCF with an 8.6% yield.

• Stock #3: A consumer-finance name generating $1.2B FCF with a massive 9.2% dividend.

These payouts are too big — and too steady — to ignore.

📥 [Download Your Free Guide Now]
_{^{(**By clicking this link you agree to receive emails from StockEarnings and our affiliates. You can opt out at any time.  Privacy Policy. **)}}

🧬 M&A Madness: Boston Scientific Drops $14.5B on Penumbra

In the deal that proves healthcare M&A is very much alive, Boston Scientific agreed to acquire medical device maker Penumbra for $14.5 billion. Penumbra shares rocketed 13% before the bell, while Boston Scientific dipped 2% as investors digested the hefty price tag.

The acquisition expands Boston Scientific's vascular pipeline significantly, betting big that interventional medical devices remain a growth category as populations age and procedures become less invasive. When you're willing to drop $14.5 billion on an acquisition, you're not worried about a recession in the near term.

Netflix also made moves, offering $82.7 billion for Warner Bros in a stock-and-cash transaction valued at $27.75 per share. After Warner's board initially rejected it, Netflix came back with an all-cash offer, because when streaming giants want something, they write checks with lots of zeros.

The M&A activity is a good sign for the broader market - companies don't spend billions on acquisitions when they think the world is ending. Strong dealmaking activity powered Goldman Sachs' blowout quarter, and it's exactly the kind of corporate confidence that tends to filter down into equity performance.

📌 Bottom Line

Today was a perfect example of why trying to call tops in this market can be a fool's errand. Two days of selling had everyone convinced the AI trade was over, earnings would disappoint, and geopolitical chaos would finally catch up to stocks. Instead, TSMC delivered blockbuster results, economic data came in hot, and the major indices bounced right back toward record highs.

Keep your eyes on tomorrow's session and more earnings rolling in next week. But for now, the bulls are firmly back in control.

🔥 What’s Heating Up This Week

Markets are moving - here's whats heating up with our partners:

• Which stock will the White House buy next? ^[ad]

• Pricing glitch lets you take shots at “dividends”… every week ^[ad]

• Trump's Secret Retirement Fund ^[ad]

✌️ Thanks for vibing with us.

⚠️ WARNING: Market data is subject to rapid change. Verify current information before making trading decisions.

DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in the linked report. The past performance of any trading system or methodology is not necessarily indicative of future results. All trades, patterns, charts, systems, etc., discussed in the linked report are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. For full disclaimer information, click here.