Stock Region Watchlist
Chips are eating the world (and BlackRock is holding the purse)
Chips are eating the world (and BlackRock is holding the purse)
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Sometimes it feels like the semiconductor industry is basically printing its own money. The numbers rolling in from Taiwan are nothing short of astounding. There’s always talk of “growth” in this newsletter, but what’s happening in the chip sector right now looks like a historic leap forward. It’s not just growth anymore; it’s acceleration.
While the tech world is busy building the brain of the future, finance giants are quietly scooping up more cash than ever before. Builders and bankers are powering through—a fascinating duo.
Here’s the breakdown of what’s appearing on the watchlist today.
Taiwan Semiconductor ($TSM)
The undisputed king of the hill.
If proof was needed that the AI revolution is real and not just hype, TSM delivered it on a silver platter.
Q4 revenue hit $33.1 billion—a 20% jump year-over-year. Even more impressive, net income soared 35%. Efficiency is on full display.
When a company like TSMC raises its capital expenditure guidance for 2026 to $52-$56 billion, there must be strong reasoning. New factory builds in both Taiwan and Arizona come as the demand for AI chips becomes nearly insatiable.
TSMC stands as arguably the most important company in the world right now. Any shift in their direction can ripple through the entire global tech economy.
Short-term levels to watch:
Upside: Breaking above $347.90 could keep the momentum going.
Downside: Dropping below $343.71 may signal a cool-off.
ASML ($ASML)
The toolmaker everyone needs.
Building a house requires a hammer; building an advanced AI chip requires ASML’s lithography machines. That’s the reality.
ASML has just surpassed a $500 billion market cap on the heels of a 5% stock price surge. The underlying reason? TSMC’s increasing spending. When TSMC orders more high-tech equipment, ASML reaps the benefits. It’s a model of symbiosis.
“Pick and shovel” plays have always stood out during transformative periods. During gold rushes, the real winners sold shovels, not just those who struck gold. ASML provides the most advanced “shovels” in existence. With TSMC ramping up, ASML takes the driver’s seat in the industry.
Short-term levels to watch:
Upside: A move above $1,351.04 signals continued strength.
Downside: Support around $1,313.45 looks critical.
BlackRock ($BLK)
The house always wins.
While the tech sector builds, BlackRock’s team continually gathers assets. The firm now manages a record $14.04 trillion—let that figure sink in.
Profits reached $2.18 billion in Q4. Factors contributing to this include easing inflation and a more dovish Federal Reserve. When rates drop or stabilize, cash flows to ETFs—and BlackRock is unmatched in this field.
BlackRock offers the ultimate safety net play, owning a slice of everything. Rising markets? BlackRock wins. Investors seek bonds? Still a win. Sometimes “boring” can be beautiful, especially when compounding over the long term is the goal.
Today feels like a “risk-on” kind of day. The foundational infrastructure for the next decade of technology is rising, and smart money is already positioning for what comes next.
Stay sharp, stay disciplined, and resist the urge to chase.
Happy Trading,
The Stock Region Team
Disclaimer: The content in this newsletter is for informational and educational purposes only and is not investment advice. The views and opinions expressed do not necessarily reflect the official policy or position of Stock Region. Stock Region is not responsible for any financial losses. Always invest thoughtfully.