On Thursday, semiconductor equipment and materials stocks saw broad gains in pre-market trading, with Applied Materials (AMAT.US) climbing more than 8%, ASML (ASML.US) rising over 7%, and KLA Corporation (KLAC.US) advancing nearly 7%. Taiwan Semiconductor Manufacturing (TSM.US) and ASE Technology Holding (ASX.US) both gained over 5%, while Micron Technology (MU.US) increased close to 4%.

The catalyst for the surge was TSMC's reported financial results for the fourth quarter of 2025, which revealed a net profit of TWD 505.7 billion, surpassing market expectations. This figure represents the highest quarterly net profit in the company's history and marks the eighth consecutive quarter of profit growth.

Additionally, the company's fourth-quarter gross margin reached 62.3%, also exceeding market forecasts. For the first quarter of 2026, TSMC projected revenue to be in the range of $34.6 billion to $35.8 billion, with an anticipated gross margin between 63% and 65%, and an operating profit margin expected to fall between 54% and 56%.

The company also provided its full-year 2026 capital expenditure forecast, anticipating it to be in the range of $52 billion to $56 billion.