Earnings season has begun, with Taiwan Semiconductor Manufacturing reporting a 40.8% year-over-year increase in Q3 revenue to $33.10 billion. The company raised its full-year guidance and highlighted strong growth in AI spending, boosting chip stocks like Nvidia and Broadcom by 1%. Investors are optimistic despite renewed trade war fears.

TSMC’s robust results demonstrate the strength of the AI trade, with executives citing massive demand from AI as a key driver. The company’s stellar performance helped alleviate concerns about the trade war, which resurfaced this week due to heightened tariff worries. Other chip stocks also saw gains in response to TSMC’s positive news.

Treasury Secretary Scott Bessent emphasized that the administration won’t change its trade stance to prop up the stock market, urging investors not to rely on policy shifts. Meanwhile, Foxconn’s plans to meet with Nvidia and its recent deals with OpenAI signal continued momentum in the AI sector, fueling investor optimism amid trade war volatility.

Read more at Yahoo Finance: The stock market just got its first signal from earnings that the AI trade is still booming