Chipmakers Rebound, TSMC Bets $265B on US AI Expansion

Futures rise as chip stocks rebound ahead of Big Tech earnings Nasdaq 100 futures gained 1.3% as the semiconductor sector recovers from a steep selloff. Markets are focused on AI-related earnings from Alphabet, Tesla, and Texas Instruments, which could account for 44% of S&P 500 earnings growth. 123

TSMC raises 2026 outlook and adds $100 billion to US expansion The chipmaker raised its 2026 revenue growth forecast to slightly above 40% on surging AI chip demand. It will contribute $100 billion in additional investment to its Arizona facilities, bringing the total US commitment to $265 billion in the largest foreign direct investment in US history. 456

Netflix stock crashes to 52-week low on weak quarterly guidance Shares continued their slide after the streaming giant forecast Q3 revenue of $12.86 billion, missing Wall Street estimates of $13 billion. Investors are banking on the ad-supported tier, which is projected to account for 25% of incremental revenue in 2026. 789

PayPal board rejects $53 billion Stripe-Advent takeover bid PayPal's board formally rejected the $60.50 per share joint bid at a specially convened meeting, pushing for a price closer to $70 a share. The company has hired Goldman Sachs and Evercore to evaluate strategic options, including a potential sale or remaining independent. 1011

Meta turns AI compute scarcity into a $10 billion cloud bet Meta Platforms is monetizing its massive AI infrastructure investment by offering cloud compute services, tapping into the scarcity of AI processing power. The move positions Meta to capture a portion of the booming enterprise AI market beyond its core advertising business. 12