US stocks open higher as the AI trade reignites on record results from Taiwan Semiconductor (TSM), which posted record quarterly profit and raised its 2025 outlook for the second time this year. The chipmaker expects mid-30% revenue growth next year and plans to expand production in Arizona with a new $40B investment. The news lifted Nvidia (NVDA), Broadcom (AVGO), and ASML (ASML) stock, while analysts warned the AI boom could be entering bubble territory. Bank of America’s latest fund manager survey cited AI as the top investor risk for the first time. Oil prices climbed after President Trump said India had agreed to halt imports of Russian crude oil, although New Delhi had not confirmed the claim. United Airlines (UAL) stock dipped after mixed results but rose in early trading on a stronger-than-expected holiday forecast. Meanwhile, Fed Governor Christopher Waller called for one more 25 bp rate cut this month but urged caution afterward. Meanwhile, newly appointed Governor Steven Myron pushed for a deeper 50 bp cut, underscoring growing divisions within the central bank.

Takeaways:

Taiwan Semiconductor lifts AI trade with blowout results and raised outlook
Fed split: Waller calls for caution, Myron pushes for deeper cut
United Airlines forecasts strong Q4 despite mixed Q3 results
Oil rises on Trump’s claim India will stop Russian imports

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AI trade surges, Fed split, United lifts outlook