The AI supercycle is thriving, with TSMC leading the charge. Market strategist Victoria Fernandez believes the “rotation” out of Big Tech might slow down, with semiconductor companies like ASML, Applied Materials, and Lam Research showing strong earnings, signaling continued growth in the AI sector.

TSMC reported impressive Q4 earnings, with revenue hitting $33.73 billion and earnings per share at $3.15, exceeding expectations. The company plans $56 billion in capital expenditures for 2026, signaling a bullish outlook on the tech infrastructure.

ASML, the provider of lithography machines for advanced AI chips, saw its market cap surpass $500 billion after TSMC’s news. Applied Materials and Lam Research also saw premarket gains, highlighting the crucial role of these suppliers in the AI ecosystem.

Read more at Yahoo Finance: 4 semiconductor stocks giving the AI boom ‘more legs’