TLDR
- Super Micro Computer (SMCI) shares surged 10.94% to $32.64 on Friday following positive chip sector news.
- TSMC announced 33-37% increase in capital expenditures to $52-56 billion for 2026 versus $38-42 billion in 2025.
- The chip manufacturer reported Q4 net income up 35% to NT$505.7 billion and revenue up 20.5% to NT$1.046 trillion.
- Super Micro obtained a $2 billion revolving credit facility from JPMorgan and other lenders.
- The company revealed new AI retail partnerships with Everseen, Kinetic Vision, and NVIDIA for intelligent retail solutions.
Super Micro Computer shares posted strong gains Friday, rising 10.94% to close at $32.64. The move came after Taiwan Semiconductor Manufacturing Company delivered news that energized the artificial intelligence sector.
Super Micro Computer, Inc., SMCI
TSMC announced plans to increase capital spending to a range of $52 billion to $56 billion in 2026. That’s a 33% to 37% jump from the prior year’s $38 billion to $42 billion.
The higher spending reflects robust demand for semiconductors. Super Micro relies heavily on Nvidia GPUs, which TSMC produces. This connection drove investor enthusiasm for SMCI shares.
IREN Ltd also benefited from the TSMC news, climbing 11.43% during the session. Both companies have heavy exposure to Nvidia’s chip products.
TSMC Results Fuel Optimism
TSMC’s fourth quarter numbers provided additional support for the rally. Net income hit NT$505.7 billion, representing 35% growth from NT$374.68 billion in the year-ago quarter.
The company’s net sales reached NT$1.046 trillion in Q4. This marked a 20.5% increase from the previous year’s NT$868.46 billion.
The strong performance from TSMC reinforced confidence in AI infrastructure demand. Super Micro operates as a server supplier in this growing market.
Fresh Capital and Business Developments
Super Micro recently landed a $2 billion revolving credit facility with JPMorgan leading a group of lenders. The financing gives the company more flexibility to fund operations and expansion.
Earlier in January 2026, Super Micro announced retail-focused AI collaborations. The partnerships with Everseen, Kinetic Vision, and NVIDIA aim to deliver edge-based intelligent retail solutions.
These systems target improvements in store operations and supply chain efficiency. The deals expand Super Micro’s presence in the retail technology space.
Earnings Ahead and Valuation Views
Super Micro plans to release second quarter fiscal 2026 results during the final week of January. The timing follows the company’s typical reporting schedule.
Projections from analysts suggest revenue could hit $48.2 billion by 2028 with earnings of $2.4 billion. The forecast assumes 29.9% annual revenue growth through that period.
Community valuations on Simply Wall St range from $47.24 to $82.39 per share for SMCI. One analysis points to a fair value of $48.53, which would represent 49% upside from Friday’s close.
The $2 billion credit facility strengthens Super Micro’s financial position as it pursues AI infrastructure opportunities. However, the company faces ongoing questions about margin pressure from pricing competition in the AI server market.
