Wall Street Advances on Renewed AI Optimism after Strong TSMC Reports

U.S. markets ticked higher Thursday as investor optimism surged around artificial intelligence following a standout quarter from Taiwan Semiconductor Manufacturing Company (TSMC). The tech-heavy rally lifted major indexes: the Dow added about 0.18%, the S&P 500 rose 0.29%, and the Nasdaq gained 0.51%. 

What happened

TSMC reported a bust-out quarter and raised its full-year revenue forecast on the back of surging demand for AI chips. The strong outlook triggered gains across U.S. chipmakers — Nvidia Corporation (+1.2%), Micron Technology Inc. (+2.7%), and Broadcom Inc. (+1.3%) — with the tech sector broadly in focus.

Why it matters

• The AI hardware story is gaining momentum: what started as hype is evolving into a structural growth theme, not just a cycle.

• With major tech firms and chip makers outperforming, investors are shifting more capital toward “picks and shovels” of AI infrastructure.

• The rally comes amid expectations of easier U.S. monetary policy ahead; dovish central-bank signals add fuel to risk-asset flows.

Outlook

• Tech and semiconductor stocks remain key candidates for outperformance.

• Investors should watch for follow-through from companies adjacent to the AI value chain (software, data centre infra, cloud).

• If macro or geopolitical risks re-emerge (trade tensions, China export controls), momentum could stall—but the AI narrative looks durable for now.