TSMC announces nearly 40% increase in profits, Trump confirms China trade war

Group 1: AI and Semiconductor Industry - TSMC, the world's largest contract chipmaker, reported a nearly 40% increase in Q3 profits, reaching almost $15 billion, and raised its full-year forecast due to bullish spending on AI [12][32] - The AI trend continues to drive demand for semiconductors, with companies like ASML, AMD, Nvidia, and Broadcom also expected to benefit from the growing need for chips [32] - Nvidia, a key player in the high-speed networking space, has seen fluctuations in its stock price, indicating its exposure to China amid ongoing trade tensions [22][32] Group 2: Labor Market and Economic Indicators - The Federal Reserve's Beige Book indicated a muted demand for labor, with employers reporting lower headcounts due to layoffs and the impact of AI on job replacement [8][9] - The unemployment rate has increased to 4.3%, suggesting a deterioration in the labor market since the summer months [9] - Despite rising input costs and inflation pressures, the Fed is considering interest rate cuts in response to trade tensions and labor market conditions [6][11] Group 3: Corporate Earnings and Market Reactions - Nestle's shares rose over 8% following a rebound in sales and a plan to cut 16,000 jobs as part of a turnaround strategy under new leadership [14] - Keycorp reported net interest income of $1.19 billion and adjusted earnings per share of 41 cents, beating estimates, which led to a pre-market share increase of nearly 1.5% [15] - Bank of New York Mellon experienced a 21% jump in Q3 profit, with total revenue reaching a record $5.08 billion, although shares remained flat in pre-market trading [16] Group 4: Data Center Investments - The data center sector is highlighted as a key area for investment opportunities, encompassing servers, networking, power, and cooling systems [18][19] - Companies like Dell, HPE, and Super Micro are seeing significant stock price increases due to their roles in providing AI-ready infrastructure [20] - Cooling systems and power management companies, such as Verdiff and Eaton, are also experiencing growth, with Verdiff's stock up 150% over the last six months [23][24]