What I Am Watching This Week

What I’m Watching This Week

This week is packed with major developments across semiconductors, AI, and earnings season. From standout results by TSMC and ASML to Amazon’s aggressive AI push, there is a lot happening right now that could shape the next leg of the market.

TSMC delivers outstanding results

TSMC reported excellent results yesterday, reinforcing the idea that demand for AI chips continues to grow rapidly.

Here is what the latest trailing twelve month figures show:

Revenue reached $128.5 billion, with a 18.7% CAGR.
Earnings per share rose 82.6%, with a 20.4% CAGR.
Free cash flow per share increased 92.5%, with a 22.3% CAGR.
Profit margins also continue to improve.

The company is executing at an extremely high level, and the stock’s performance over the last year reflects that, rising 139%.

From a valuation perspective, TSMC is trading at a forward EV/EBIT of 16.8, slightly above its average of 15. Still, with growth this strong and margins continuing to expand, that premium looks fully justified, at least in my view.

ASML posts another huge quarter

ASML also released very strong first quarter 2026 results and once again beat expectations.

The key numbers were impressive:

Revenue came in at €8.77 billion, up 13.3% year over year, beating estimates by €110 million.
GAAP EPS came in at €7.15, beating expectations by €0.54.

Its full year 2026 guidance remains strong:

Total net sales are expected to reach €36 to €40 billion.
Gross margin is expected to come in between 51% and 53%.

ASML is also continuing to reward shareholders. The company announced a total 2025 dividend of €7.50 per share, up 17% from 2024. During Q1 2026, it also repurchased around 0.9 million shares worth €1.1 billion.

ASML continues to dominate the semiconductor equipment space, and shareholders have every reason to be happy with the trend.

Sandisk joins the Nasdaq-100

Another big development this week is Sandisk officially joining the Nasdaq-100 in the latest major index rebalancing, replacing Atlassian.

The growth story here is eye-catching:

Revenue is expected to rise from $8.9 billion today to $27.6 billion by 2027.
The stock is already up 2,564% in one year.
It is currently trading at $851.

Everything points to strong years ahead for Sandisk. The company that helped transform the world of SSDs and flash memory is now entering the elite group of the 100 largest technology companies in America.

Amazon is going all in on AI

Amazon is also firmly on my radar this week.

CEO Andy Jassy made it pretty clear that being bearish on AI at this point is a mistake. More importantly, Amazon is backing that view with real numbers and enormous capital commitments.

A few highlights stand out:

Amazon’s chips business now has an annual run rate above $20 billion.
The company plans to invest $200 billion in capex in 2026, mainly focused on AWS, with signed customer agreements already in place and very strong demand for AI workloads.
Jassy believes those investments should begin paying off quickly, especially in 2027 and 2028.

On top of that, Amazon announced a new $25 billion investment in data centers in Mississippi, expected to create 2,000 new jobs while also supporting renewable energy initiatives.

The stock has gained more than 13% over the last week, and analysts believe it could move above $280 over the next 12 months.

Personally, I am more bullish than ever on Amazon.

Earnings season is heating up

We are now officially moving deeper into earnings season.

Last week marked the beginning of the Q1 2026 earnings season, led by the major banks, and on average the results were very strong. This week the calendar gets even more interesting, with several important companies reporting.

Here is the lineup I am watching:

Tuesday: UNH, GE
Wednesday: VRT, GEV, BA, TSLA, NOW, IBM, LRCX, TXN
Thursday: LMT, AXP, INTC
Friday: PG

Tesla is obviously one of the biggest names to watch, as it will be the first of the Magnificent 7 to report. ServiceNow is also especially interesting, because its results may give us more insight into the whole SaaSapocalypse narrative.

Overall, this is shaping up to be an important week, and in general, expectations are pointing toward a solid quarter for US corporate earnings.

AI demand remains extremely strong, semiconductor leaders keep delivering, Amazon is accelerating its AI bet, and earnings season could give us the next big signal for the market.