Breakfast News: TSM Cashes In On The AI Frenzy

Breakfast News: TSM Cashes In On The AI Frenzy

April 16, 2026

| Wednesday's Markets | | --- | | S&P 500 7,023 (+0.80%) | | Nasdaq 24,016 (+1.59%) | | Dow 48,464 (-0.15%) | | Bitcoin $75,092 (+1.26%) |

Source: Image created by Jester AI.

1. TSM Profit Surges 58% as AI Chips Lead

**Taiwan Semiconductor **(TSM 1.75%) posted a fresh quarterly record for net profit, as part of broader results showing demand for AI chips remains strong and a lack of any near-term impact of supply chain disruption. The stock was marginally higher following the release of earnings.

• Advanced technologies accounted for 74% of total wafer revenue: The growing preference for advanced technologies, which includes smaller nanometer products that have greater processing power and efficiency, shows the trend of buying from key customers such as Apple (AAPL 0.51%).
• New advanced chip fabrication plant in Taiwan being added: To keep up with demand, the company is adding production facilities. Management now expects capex spending to be at the high end of a $52 billion to $56 billion range, around a 37% increase versus last year.

2. TSLA and SpaceX Pursue Terafab Project

Bloomberg reports that Tesla (TSLA +4.61%) and SpaceX executives have reached out to chip suppliers including Applied Materials (AMAT +1.92%) for price quotes and delivery times for gear to support the Terafab project.

• Musk wants to move at "light speed": The Terafab project, a joint venture from Tesla and SpaceX to supply 1 terawatt of annual computing capacity, would allow Musk to produce his own semiconductors and chips for related hardware, including Tesla's humanoid robots.
• Project estimated to need $5 trillion to $13 trillion in capex: Musk believes the semiconductor industry isn't scaling fast enough to produce the chips his companies need, although it's unsure where the funding will come from. Tesla is recommended by both Team Rule Breakers and Team Hidden Gems, and is beating the S&P 500 by 100% since the April 2024 Hidden Gems rec.

3. Nasdaq's 11-Day Surge Sets Speed Record

The S&P 500 and Nasdaq hit fresh all-time highs yesterday, with the latter enjoying an 11th daily win streak, as improving sentiment around the possibility of a peace deal between the U.S. and Iran helps to lift investors' moods.

• The Nasdaq rally provides the fastest momentum reversal in decades: Historically, the move for an index to move from being oversold to overbought can take months. The Nasdaq became overbought from a technical perspective yesterday, taking just 11 days from being oversold, the fastest ever swing recorded.
• 8 stocks in the S&P 500 hit record highs on Wednesday: Interactive Brokers (IBKR +0.46%) was one stock in this category. Recommended by Team Hidden Gems in Stock Advisor, Fool analyst Loren Hurst included it as an "Overlooked Champion" in Q1.

4. Notable Thursday Earnings to Watch

• Prologis (PLD 0.12%) releases earnings before the opening bell, following a steady performance last time around. People will be watching for progress from the Foundational Stock in Dividend Investor on the aggressive push into data centers and the logistics joint venture with La Caisse.
• U.S. Bancorp (USB 1.42%) inched around 0.5% lower ahead of the market open, with results not as strong as investors hoped for. The Hidden Gems rec beat expectations last quarter, but the net income figure this time was impacted by higher non-interest expenses and higher provisions for credit losses.
• Netflix (NFLX 2.39%) will report after the market closes. The Stock Advisor rec by Team Rule Breakers is expected to deliver further revenue gains, building on last quarter, as a strong content slate and ad-supported revenue helps to lift performance.

5. Your Take

TSMC and **ASML **(ASML 1.87%) are two critical pillars of the global semiconductor industry. Their relationship is often described as a symbiotic monopoly: ASML is the only company that can build the machines needed to make the world's most advanced chips, and TSMC is the only company that can operate those machines at the scale and precision required by tech giants.

Today we're asking which of the two you'd rather start a position in today, and why?

Debate with friends and family, or become a member to hear what your fellow Fools are saying!