TSMC reports record profits and plans major spending due to AI chip demand

TSMC, the world's largest contract chipmaker, reported a big jump in its fourth-quarter profit, beating expectations. The company's strong results and its announcement of plans to increase capital spending sent a positive signal to the stock market, particularly lifting other semiconductor company stocks.

The company's performance and spending plans are being driven by surging demand for the advanced chips needed for artificial intelligence applications. This news is seen as a sign that the current boom in AI technology is expected to continue.