Wall Street futures gain after TSMC's results support renewed AI optimism

(Corrects tariffs number to 100% from 00% in paragraph 10) (Reuters) -U.S. stock index futures rose on Thursday, boosted by strong quarterly update from TSMC that reinforced investor optimism around AI, extending a rally in chip stocks in the previous sessions. TSMC, the world's biggest producer of advanced chips, raised its full-year revenue forecast on a bullish outlook for spending on artificial intelligence. U.S.-listed shares of the company, which also posted a better-than-expected record quarterly profit, rose 2.2% premarket. Shares of some major U.S. chipmakers also advanced, building on gains from Wednesday when ASML's solid quarterly results and a $40 billion data center deal by BlackRock and a Nvidia-backed group fueled optimism around AI. Nvidia rose 1.1%, Micron Technology added 2.9% and Broadcom gained 1.8%. The AI-driven momentum and optimism around U.S. rate cuts have helped markets in recent months. AI-related tech stocks were among the biggest boosts to markets this week. Robust earnings from major U.S. banks also grabbed attention this week, offering fresh signs of economic resilience at a time when official macroeconomic reports remain delayed due to the government shutdown. At 05:27 a.m. ET, Dow E-minis were up 112 points, or 0.24%, S&P 500 E-minis were up 18 points, or 0.27%, and Nasdaq 100 E-minis were up 110.25 points, or 0.44%. Meanwhile, investors remained focused on the recent escalation of China-U.S. trade tensions. Top U.S. officials on Wednesday blasted China's major expansion of rare earth export controls as a threat to global supply chains, but said Beijing could still change course, stressing that Washington did not want to escalate the conflict. President Donald Trump's threat to cancel the U.S.-China meet and impose an additional 100% tariffs on Chinese goods capped investors' risk appetite last week. U.S. Treasury Secretary Scott Bessent emphasized that Trump is ready to meet Chinese President Xi Jinping in South Korea later this month. A slate of Fed officials including governors Stephen Miran and Christopher Waller, Vice Chair for Supervision Michelle Bowman and Richmond President Thomas Barkin are set to speak later in the day. Among other moves, Salesforce rose 4.9% after the company said it expects revenue of more than $60 billion in 2030, above Wall Street estimates. Hewlett Packard Enterprise slumped 8.9% after it forecast annual profit and revenue below Wall Street expectations. United Airlines declined 1.7% after reporting mixed quarterly results. (Reporting by Sukriti Gupta in Bengaluru; Editing by Maju Samuel)

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