Breakfast News: TSM Defies Bubble Fears
January 9, 2026
| Thursday's Markets |
|---|
| S&P 500 6,921 (+0.01%) |
| Nasdaq 23,480 (-0.44%) |
| Dow 49,266 (+0.55%) |
| Bitcoin $91,023 (-0.07%) |
Source: Image created by Jester AI.
1. TSM Hits Record Sales on AI Boom
Taiwan Semiconductor Manufacturing (TSM +1.77%) reportedly broke its record for annual sales in 2025, with Reuters calculations based on monthly data showing a Q4 revenue haul of NT$1,046.08 billion, as global demand for AI chips continued. The stock nudged up around 0.25% ahead of the market opening.
- Q4 revenue increases 20.45% versus same period last year: Thanks to its role in manufacturing advanced AI accelerators, TSM is enjoying growth as global tech giants continue to increase spending into projects requiring related products, pouring cold water on concerns around a sector bubble.
- Full Q4 earnings report due next week: The more detailed presentation, with company commentary and an outlook on capital spending for 2026, will be released on 15 January.
2. Nvidia Hires First CMO to Boost Brand
Nvidia (NVDA 0.05%) has hired its first chief marketing officer, poaching Alison Wagonfeld from Alphabet (GOOG +1.05%), highlighting its desire to boost brand awareness and recognition outside the tech space.
- "A new role heading up marketing and communications as Nvidia embarks on its next phase of growth": Wagonfeld pointed to the next chapter at Nvidia, with the brand only ranked 15th on the Interbrand top brand list for 2025, behind various tech peers. The stock is beating the S&P 500 by 67% since May 2024's Hidden Gems recommendation.
- Nvidia import approvals provide a catalyst for BABA: News of China's plans to approve some H200 chip imports helped to push Alibaba (BABA 2.27%) up 5.26% yesterday. As Fool analyst Yasser El-Shimy noted in October, Alibaba "is heavily investing in AI", with "claims to reduce Nvidia GPU use by 82% with a new pooling system, which shows...more efficient capital expenditure."
3. Pharma: J&J Strikes Deal, Merck Eyes RVMD
Johnson & Johnson (JNJ 0.66%) has agreed to cut U.S. drug prices in exchange for tariff exemptions, with the FT reporting peer Merck (MRK 0.41%) is in talks to buy cancer drugmaker Revolution Medicines (RVMD +10.37%).
- "When the public and private sectors work together toward shared goals, we can deliver real results for patients and the U.S. economy": Johnson & Johnson CEO Joaquin Duato praised the deal, talking about the "significantly discounted rates" for purchasing and reiterating the $5 billion investment in U.S. manufacturing by 2029.
- Several large suitors circling Revolution Medicines: A price tag of up to $32 billion is reportedly being discussed despite a current market cap of $20.8 billion, due to the anticipation around a new pancreatic cancer therapy. Revolution stock rose over 15% ahead of the opening bell.
4. Next Up: Employment Data and Tariff Ruling
The December jobs report, due out today, is expected to show a 70k gain, with the unemployment rate due to fall from 4.6% previously to 4.5%, although the data accuracy will still be partly influenced by the government shutdown.
- Private data supports easing labor market concerns: Private payroll data from ADP showed a gain of 41k jobs in December, with separate data showing layoff announcements for the month coming to the lowest total since July 2024.
- Supreme Court ruling on tariffs pending: Today has been set as an opinion day by the judges, providing the first chance to get a decision on whether President Trump lawfully imposed tariffs last year, with wide-sweeping implications if the duties are found to be unlawful.
5. Your Take
Many established pharma companies pay solid dividends while still investing heavily in R&D. Does this combination of income and growth potential make them ideal long-term holds, or would you rather own pure growth companies or pure dividend plays? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.
