Zaid Admani

Many of the big tech names will start reporting earnings in a couple of weeks.

So maybe those earnings could spark a rally.

We'll have to see how it all plays out.

I mean, it does feel weird being a tech investor and underperforming the market because that hasn't happened in a long time.

But yeah, we'll be breaking down the earnings in a couple of weeks.

So if you're new here, make sure you're subscribed to the podcast and tuning in every day to stay in the loop.

Let's run through some headlines, starting with TSMC.

TSMC

TSMC is the world's largest chip maker, one of the most important companies in the world, and they just reported earnings and delivered a record quarter with profits jumping 35%.

That now marks eight straight quarters of year over year profit growth, which is incredible.

Revenue also beat expectations, rising 20%, and the outlook is what really caught investors' attention.

TSMC says it expects 2026 revenue growth of nearly 30%, which is even stronger than what Wall Street was forecasting.

So that's a pretty big signal that the AI boom still has plenty of fuel left in the tank.

A big chunk of TSMC's growth right now is coming from high-performance computing, which includes AI chips and advanced 5G applications.

That segment alone made up 55% of total sales last quarter.

Now, smartphones are still a meaningful part of their business, accounting for about 32% of revenue.

Now, TSMC is increasing their CapEx spending to keep up with all this demand.

The company says they expect their CapEx to be in the range of between $52 billion and $56 billion in 2026, which is up from the $40 billion in 2025.

So these numbers from TSMC are definitely a bullish indicator for the overall AI trade, but I do want to point out one risk, which is the shortage in memory chips.

See right now with all this AI infrastructure build out, the AI servers going into these AI data centers need DRAM, NAND and high bandwidth memory, which is squeezing the supply for smartphones and PCs.