Core Insights - Taiwan Semiconductor Manufacturing Co. (TSMC) is experiencing overwhelming demand for its advanced packaging technologies, particularly Chip on Wafer on Substrate (CoWoS), driven by major companies like Nvidia, Google, Amazon, and MediaTek seeking capacity for next-generation AI chips [1][2]. Group 1: Demand and Capacity - TSMC's CoWoS lines are fully booked, with no spare capacity available despite aggressive expansion efforts, indicating a severe short supply [2]. - The company is investing heavily to close the capacity gap, as stated by TSMC's chairman during an earnings call [2]. Group 2: Outsourcing and Partnerships - Due to demand outpacing internal expansion, TSMC plans to outsource parts of its packaging workflow starting in 2026, accelerating collaborations with equipment and packaging partners to ensure timely delivery of advanced components [3][4]. - Suppliers are experiencing surging orders as TSMC shifts from a fully in-house model to a hybrid approach [4]. Group 3: Revenue Growth - TSMC reported a consolidated net revenue of approximately NT$367.47 billion for October 2025, marking a 16.9% increase year-over-year and an 11.0% increase from the previous quarter [7]. - From January to October, TSMC's revenue totaled NT$3.13 trillion, up 33.8% compared to the same period last year [7]. Group 4: Market Position and Performance - TSMC remains a key manufacturing partner for Nvidia's Blackwell AI platform, which continues to see strong global demand despite changes in U.S. export rules [8]. - The company's stock has surged 47.07% year-to-date, with strong rankings in Quality and Growth and Momentum relative to competitors [8].

Core Insights - The U.S. stock market experienced significant volatility on November 20, 2025, with major indexes initially rallying due to Nvidia's strong earnings but ultimately closing lower amid concerns about AI valuations and Federal Reserve interest rate policies [1][2][3] Market Performance - Major U.S. stock indexes reversed course after opening with gains, with the Nasdaq Composite falling 2.2% to 22,078.05, the S&P 500 down 1.6% to 6,538.76, and the Dow Jones Industrial Average dropping 0.8% to 45,752.26, reflecting a 1,115-point swing during the day [2][3] - For the week, the S&P 500, Dow, and Nasdaq are down 2.9%, 3%, and 3.6% respectively, indicating ongoing market pressure [3] Earnings Reports - Nvidia reported impressive Q3 fiscal year 2026 earnings with EPS of $1.30 and record revenue of $57 billion, exceeding analyst expectations, but its stock closed down 3.2% after an initial 5% jump [4] - Walmart's shares rose 6.5% following better-than-expected Q3 results and an increased fiscal 2026 outlook, reporting adjusted EPS of $0.62 on revenue of $179.5 billion [5] - Other companies like Lowe's, Dycom Industries, and TJX also reported strong earnings, with Lowe's shares jumping 4% and Dycom's shares surging 9.8% [6] Market Sentiment and Future Outlook - The market's skepticism about AI valuations is evident, with tech companies like AMD, Micron, and Oracle experiencing declines between 6.6% and 10.9% [7] - Investors are closely monitoring economic data and the Federal Reserve's interest rate decisions, with recent employment data suggesting stronger-than-expected job growth [7] - Analysts caution that while November has historically been strong for the market, valuations remain stretched, and 2026 may present challenges for investors [8]

Core Market Dynamics - The U.S. stock market experienced significant volatility on November 20, 2025, with initial gains from Nvidia's strong earnings evaporating by afternoon trading [1][9] - Major indexes like the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw substantial swings, with the S&P 500 initially rising by 1.9% before dropping to a loss of 0.7% [2][3] Sector Performance - Technology stocks, which initially led the morning rally, faced sharp losses in the afternoon, indicating a reassessment of high valuations amid economic uncertainties [4] - Walmart emerged as a notable outlier, with shares jumping approximately 6% due to better-than-expected third-quarter results and an optimistic outlook for fiscal year 2026 [5] Economic Data Impact - The delayed September jobs report revealed stronger-than-expected job growth with 119,000 jobs added, surpassing the forecast of 50,000, but the unemployment rate rose to 4.4% from 4.3% [6][7] - This mixed employment data complicates the Federal Reserve's outlook ahead of its December FOMC meeting, with the odds of a 25 basis point rate cut rising to 39.6% [7] Major Corporate Announcements - Nvidia reported blockbuster fiscal 2026 third-quarter results, exceeding expectations and providing a strong revenue forecast, although shares later pared gains to a decline of about 2.3% [12] - Other companies like Palo Alto Networks and Bath & Body Works faced challenges, with Palo Alto's shares slipping after announcing an acquisition and Bath & Body Works plummeting approximately 17% due to disappointing earnings [12]

Core Insights - Nokia has completed a capital raise involving Nvidia, which integrates Nokia into Nvidia's AI networking plans, creating mutual benefits for both companies [1][2] - Nvidia acquired approximately 2.9% of Nokia's total shares through American Depositary Shares, translating to a financial infusion of about $1 billion at a share price of $6.01 [2] - Nvidia's upcoming earnings announcement is expected to reveal significant sales figures, with Wall Street anticipating over $54 billion in sales for fiscal 2026 third quarter, driven by AI infrastructure demand [3][5] Group 1: Nokia and Nvidia Partnership - The partnership with Nvidia is seen as a strategic move for Nokia, enhancing its role in the AI sector and aligning with Nvidia's expansion plans [1] - The capital raise is not just a routine exercise but a significant event due to Nvidia's involvement, indicating a strong market interest [1][2] Group 2: Nvidia's Earnings Expectations - Nvidia's earnings report on November 19 is highly anticipated, with a focus on the implications of the Nokia agreement for its AI expansion [4] - Analysts expect Nvidia's sales to reflect a year-over-year increase of over 50%, driven by heightened demand for AI in data centers [6] - The company's gross margins are projected to be in the mid-70s, supported by the growth of its Blackwell AI platform among hyperscale clients [5][6]