Taiwan Semiconductor's Robust Earnings, Capex Outlook Boost ASML, Applied Materials, And Other Stocks: Retail Turns Extremely Bullish

Driving the upsurge of semiconductor equipment stocks is TSMC’s strong revenue forecast and capital expenditure outlook.

Shares of ASML Holding NV (ASML), Applied Materials Inc. (AMAT), KLA Corp. (KLAC), and other related stocks surged in Thursday’s mid-day trade after the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSM) posted robust earnings.

ASML, AMAT, and KLAC’s shares gained between 6% to 7% in mid-day trade on Thursday. TSMC’s U.S.-listed shares, too, gained more than 5% after paring some of its gains since the markets opened.

TSMC reported robust earnings during the fourth quarter with net income of $11.38 billion, edging past the $11.29 billion forecast, according to Koyfin.

TSMC’s earnings per share (EPS) came in at $2.24, ahead of Wall Street estimates of $2.20.

However, driving the upsurge of semiconductor equipment stocks is TSMC’s strong revenue forecast and capital expenditure outlook.

The chip manufacturer projects its capex for 2025 to be between $38 billion and $42 billion.

Of this, it expects 10% to 20% of its capex to go toward advanced packaging and related areas, compared to nearly 10% in 2024. ASML, a key maker of lithography equipment, is expected to benefit from this increase.

Retail sentiment on Stocktwits for the TSM stock entered the ‘extremely bullish’ (92/100) territory, rising from ‘bullish’ (71/100) a day ago.

Sentiment for other semiconductor equipment makers also entered the ‘extremely bullish’ territory.

has surged more than 16% in the past six months. In contrast, ASML’s share price has fallen by over 28% during this period.

AMAT stock has fallen over 22% in this time, while KLAC’s shares have fallen over 11%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<