Core Viewpoint - TSMC reported a 20.45% increase in fourth-quarter revenue year-over-year, driven by heightened demand for AI applications, surpassing market expectations [1][2]. Group 1: Financial Performance - Revenue for the fourth quarter was T$1.046 trillion ($33.11 billion), compared to T$868.46 billion in the same period last year [2]. - The reported revenue exceeded the LSEG SmartEstimate of T$1.036 trillion ($32.79 billion) from 20 analysts and aligned with TSMC's guidance of $32.2 billion to $33.4 billion provided in October [2]. Group 2: Market Position and Outlook - TSMC is a key supplier for major clients like Nvidia and Apple, benefiting significantly from advancements in AI technology [1]. - The company is set to report full fourth-quarter earnings on January 15, which will include updated guidance for the current quarter and full year, along with capital expenditure plans and revenue growth outlook [3]. - TSMC's shares increased by 44.2% last year, outperforming the broader market's 25.7% rise [3].

Group 1 - Jabil's shares increased by 1.8% following strong quarterly results, outperforming the S&P 500 index which fell by 1.2% [1] - For Q1 fiscal 2026, Jabil reported net revenue of $8.3 billion, a 19% year-over-year increase, and core net income of $309 million, up 36% [2] - Both revenue and core net income exceeded analyst expectations, with estimates of $8 billion and $2.69 per share respectively [3] Group 2 - Jabil provided guidance for fiscal 2026, projecting net revenue of $32.4 billion and core net income of $11.55 per share, surpassing analyst forecasts of $31.6 billion and $11.12 [4] - The company's intelligent infrastructure segment is expected to benefit from growing demand driven by artificial intelligence and data center expansions [5] - Jabil's performance reflects strong growth across multiple segments, not limited to its intelligent infrastructure business [5]

Core Viewpoint - Foxconn, the world's largest contract electronics maker, announced an investment of T$15.9 billion ($509.94 million) to establish its headquarters in Kaohsiung, southern Taiwan [1] Group 1 - The investment amount is T$15.9 billion, equivalent to $509.94 million [1] - The new headquarters will be located in Kaohsiung, which is in southern Taiwan [1]

Group 1: Federal Reserve and Market Reactions - New York Federal Reserve President John Williams indicated potential for a rate cut in December, suggesting the central bank may adjust its policy stance due to a softening labor market [9][10][12] - The S&P 500 experienced a significant intraday reversal, dropping 1.6% after an initial rise of 1.4%, now down approximately 5% from October highs [2][6] - Other Federal Reserve officials expressed mixed views on rate cuts, with some showing caution while others, like Williams and Jefferson, appeared more open to the idea [11][13] Group 2: Cryptocurrency Market - Bitcoin faced a severe sell-off, with $1 billion liquidated in just one hour, marking its worst month since the 2022 crypto collapse [3][4] - Bitcoin's price has dropped over 30% since reaching record highs in early October, currently trading below $85,000 [4][38] - Concerns arise regarding potential forced selling from companies heavily invested in Bitcoin, such as Strategy, which owns over 3% of all Bitcoin [37][38] Group 3: Retail Sector Performance - Retail earnings reports highlighted a focus on "value," with companies like Walmart, Ross, and TJX performing well by catering to diverse income demographics [25][26][28] - Gap Inc. reported better-than-expected results, particularly from its Old Navy and Gap brands, indicating strong consumer response to their marketing strategies [30][32] - The retail sector is characterized by a K-shaped recovery, where high-income earners are spending while low-income consumers seek value [28][29] Group 4: Warner Brothers Discovery Bids - Paramount, Comcast, and Netflix have submitted nonbinding bids for Warner Brothers Discovery, with Paramount seeking to acquire the entire company [5][34] - The bidding process is expected to continue with additional rounds, as Warner Brothers evaluates strategic options following interest from multiple suitors [34][35] Group 5: Foxconn and AI Partnership - Foxconn announced a partnership with OpenAI, planning to invest between $1 billion to $5 billion to expand its manufacturing footprint in the U.S. [36] - The collaboration aims to address challenges in establishing AI data centers, with Foxconn being a major player in contract electronics manufacturing [36]

Core Insights - OpenAI is partnering with Foxconn to design and build AI data center components in the U.S., marking a significant step in its infrastructure development plans [1][2] - The partnership aims to accelerate infrastructure deployment and secure long-term U.S. capacity, with OpenAI gaining early access to evaluate and potentially purchase systems produced by Foxconn [2][3] - OpenAI plans to co-develop multiple generations of AI servers and manufacture core components at Foxconn's U.S. facilities, which are located in several states including Wisconsin, Ohio, Texas, Virginia, and Indiana [3] Financial Commitments - OpenAI has announced spending commitments of approximately $1.4 trillion, raising concerns about its ability to generate sufficient profit to justify these investments [4] - The company anticipates reaching $20 billion in annualized revenue by the end of this year and hundreds of billions by 2030 [4] Previous Partnerships - OpenAI has a pending $100 billion agreement with Nvidia for phased investments as it builds out its infrastructure, along with cloud partnerships with major companies like Microsoft, Google, and Amazon [5] - The collaboration with Foxconn adds a manufacturing layer that localizes OpenAI's supply chain and may expedite deployment [6] Foxconn's Role - Foxconn is recognized for assembling Apple's iPhones and has expanded into AI and automotive manufacturing, building server racks tailored for AI workloads [6] - The company has a controversial history in the U.S., including a failed project in Wisconsin that was intended for flat-panel displays, which is now being repurposed for an AI data center by Microsoft [7]

Group 1: Government Shutdown and Economic Impact - The US House is preparing to vote on a bill that could end the longest government shutdown in history, with the Senate having already passed a spending bill [3][10][60] - The shutdown has led to a decline in planned holiday trips among US consumers, with average planned trips falling to 1.83% from 2.14% a year ago, and travel budgets down about 18% to approximately $2,334 [48][49] - Economists warn that the prolonged shutdown could drop GDP by up to 2% if government contractual obligations are not met, potentially wiping out economic growth for the year [53][54] Group 2: AMD and AI Market - AMD anticipates a 60% increase in data center sales over the next 3 to 5 years, with current data center revenue at $16 billion [4][5] - AMD is making significant strides in the AI sector, aiming to capture market share from Nvidia [5] - Infinian Technology has raised its sales forecast for chips used in AI data centers, indicating strong growth in this segment [7][35] Group 3: Earnings Reports and Market Reactions - Circle Internet Group reported Q3 revenue of $740 million, up 66%, with its USDC stablecoin circulation more than doubling to around $75 billion [13][14] - Cisco is expected to announce Q1 results, with solid demand for networking gear despite challenges from the government shutdown and higher parts costs [8] - Rocket Lab Corporation reported a 48% increase in revenue due to its satellite launch services, with analysts optimistic about future demand [40][42] Group 4: SoftBank and Nvidia - SoftBank's shares fell by as much as 10% after selling its entire stake in Nvidia for $5.8 billion, while also making significant investments in AI and robotics [6] - Nvidia's partner, Infinian, reported growth in sales of chips for data centers, despite facing a slowdown in the automobile sector [35]

Core Viewpoint - Foxconn expresses a positive outlook on AI-related demand, predicting it will significantly drive growth in 2026 and plans to announce a collaboration with OpenAI next week [1][6]. Group 1: AI Market Outlook - Foxconn's Chairman, Young Liu, indicates that the importance of AI will greatly increase in the coming year, despite concerns about a potential bubble similar to the dotcom era [2][3]. - The company believes that the development of AI is still in its early stages, suggesting long-term growth potential [3]. Group 2: Financial Performance - In Q3, Foxconn's cloud and networking business revenue, which includes AI servers, surpassed that of its smart consumer electronics for the second consecutive quarter [4]. - The company forecasts significant year-on-year revenue growth for Q4, with expectations of quarter-on-quarter increases in AI server revenue [4][5]. - Foxconn reported a net profit of T$57.67 billion ($1.89 billion) for the July-September period, exceeding the consensus estimate of T$50.4 billion [6][7]. Group 3: Future Developments - Foxconn is set to host its annual tech day in Taipei next week, where an announcement related to OpenAI is anticipated [6]. - The company is also exploring expansion into the electric vehicle sector, viewing it as a key future growth area, although this initiative has faced challenges [7].

Company Overview - Celestica Inc. (NYSE:CLS) is a provider of supply chain and manufacturing solutions, offering services such as design, engineering, assembly, logistics, and after-market support [2]. Stock Performance - Celestica's stock has seen a remarkable increase, tripling in value over the year, which translates to a 253% rise as of the latest report [1]. - The stock jumped nearly $25 or 8% in response to a strong quarterly performance and a positive investor day presentation [1]. Market Position and Growth Drivers - The company is benefiting from the data center boom, as it manufactures a significant amount of hardware for data centers [1]. - Celestica has begun designing its own equipment, which is seen as a lucrative opportunity for the company [1]. Future Outlook - The company provided a strong forecast for 2026, indicating confidence in its growth trajectory [1].

Core Insights - Celestica has experienced significant stock growth, with a 253% increase year-to-date, driven by strong quarterly performance and a positive investor day forecast for 2026 [2][3] - The company is benefiting from the data center boom, manufacturing essential hardware for server facilities [2][6] - Celestica has shifted its strategy from commodity markets to designing and manufacturing proprietary equipment, which has proven to be a lucrative approach [4][5] Company Performance - Celestica reported substantial top and bottom line beats in its latest quarter, indicating strong financial health [2] - The company has a forecasted revenue growth, particularly in high-speed networking, AI/ML compute, and storage systems [6][17] - Over 40% of Celestica's business is now designed for hyperscalers and digital natives, showcasing its shift towards proprietary solutions [7] Industry Trends - The demand for optical technologies, particularly co-packaged optics (CPO), is expected to grow, with Celestica actively developing this technology [12][13] - The company operates in four key sectors: aerospace and defense, semiconductor capital equipment, health tech, and industrial, with a focus on improving margins [14] - The integration of AI into business operations is becoming essential, positioning Celestica as a critical infrastructure provider in this evolving landscape [17]

Group 1: Company Performance - TSMC reported a 30% year-on-year increase in third-quarter revenue, reaching T$989.92 billion ($32.47 billion), surpassing market expectations due to heightened demand for AI applications [1][2] - The revenue exceeded the LSEG SmartEstimate of T$973.26 billion from 22 analysts and fell within TSMC's guidance range of $31.8 billion to $33 billion [2] - TSMC's shares have increased by 34% this year, outperforming the broader market's 18.5% rise [3] Group 2: Market Context - The company has benefited significantly from advancements in AI, which have compensated for the decline in demand for chips used in consumer electronics [3] - Foxconn, another major player in the industry, reported record revenue for the third quarter, indicating strong performance across the sector [4]