TSMC and ASML's earnings reports give tech stocks a shot in the arm.

The earnings disclosed by ASML and the Q1 earnings disclosed by TSMC both indicate that the current demand for AI is experiencing explosive growth.

For example, looking at TSMC's earnings, the proportion of its advanced process technology is increasing, and its gross margin is continuously improving. This means TSMC not only has a surge in current business orders, but its gross margin is also being continuously optimized. This is simply the sound of a money printing machine. Of course, this is also inseparable from TSMC's long-term pursuit of leadership in advanced process technology and its continuous attention to detail management.

The earnings and Q2 guidance disclosed first by TSMC and ASML are still relatively optimistic overall. Although they will still face disruptions to the supply of some raw materials due to the Middle East conflict, this does not hinder the overall fundamental prosperity.

Furthermore, as a key manufacturer in the crucial final execution and production stage of the semiconductor supply chain, their earnings guidance most likely represents the prosperity of the entire industry chain. The recent US stock Q1 earnings season is about to see the earnings disclosure of some tech stocks. Although they haven't been disclosed yet, based on the current guidance from major investment banks for tech stocks (expectations are being raised), and the current Q2 guidance from companies like TSMC and ASML, the outlook is relatively optimistic. Therefore, the earnings of ASML and TSMC are also equivalent to giving the market a small reassurance pill for tech stocks in advance.

So this should also be the confidence behind Nasdaq's ability to set a record for the fastest rebound recovery in history, with 11 consecutive days of gains.

(Not as investment advice)

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