The semiconductor industry experienced a notable surge on Wednesday, driven by strong financial disclosures from ASML Holding NV and a confident near-term outlook presented by Texas Instruments Inc. These positive reports resonated throughout the broader technology market, fostering an atmosphere of optimism among investors. Key players like Nvidia, Taiwan Semiconductor, and Intel also saw their shares rise, further emphasizing the sector's robust performance. This market momentum reflects a growing confidence in the semiconductor space, fueled by both established companies and emerging trends in artificial intelligence.
Texas Instruments released its fourth-quarter results, which, while slightly below analyst predictions, were quickly overshadowed by an encouraging first-quarter revenue forecast. The company projected revenues between $4.32 billion and $4.68 billion, alongside earnings ranging from $1.22 to $1.48 per share. This forward-looking guidance effectively mitigated any concerns arising from the modest Q4 earnings miss, signaling a stable and potentially growth-oriented period ahead for the chip manufacturer.
ASML also contributed significantly to the sector's positive trajectory. Despite a slight shortfall in per-share earnings for the fourth quarter, the company surpassed revenue expectations, reporting $11.40 billion—a more than 15% increase year-over-year. A substantial surge in net bookings, reaching 13.2 billion euros and including 7.4 billion euros in EUV orders, bolstered its backlog to 38.8 billion euros. This strong order book highlights sustained client investments in cutting-edge chip manufacturing technologies. Furthermore, ASML unveiled a share repurchase initiative worth 12 billion euros, slated to run until 2028, underscoring its financial health and commitment to shareholder value.
The positive sentiment in the chip market was further amplified by significant advancements in artificial intelligence. Reports indicated that China had approved the initial import of Nvidia's H200 AI chips, marking a crucial development amidst existing regulatory challenges. Concurrently, SoftBank Group was reportedly in discussions to invest an additional $30 billion in OpenAI, potentially valuing the AI firm at up to $100 billion. These AI-related headlines provided additional impetus, suggesting a burgeoning demand for advanced semiconductor technologies that power such innovations.
In the premarket trading session, ASML Holding's stock ascended by 6.22% to $1,545.02, reaching a new 52-week peak. Other prominent semiconductor companies also experienced gains: Nvidia climbed 1.64% to $191.61, Taiwan Semiconductor rose 2.51% to $346.83, and Intel surged 6.51% to $46.79. Broadcom, Advanced Micro Devices, ON Semiconductor, Marvell Technology, and ARM Holdings similarly saw increases, demonstrating a widespread positive reaction to the industry's encouraging news and the broader enthusiasm for technological advancements.