Wall Street is warning the AI trade may be overheating as record spending, investor optimism, and soaring valuations fuel fresh fears of a bubble.

TSMC's Q3 results significantly surpassed expectations, with top-line revenue beating by 5% and net income by 12%. See why I'm maintaining my Buy rating on TSM.

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.

The server maker, focused on new AI opportunities, forecast weaker-than-expected revenue growth for the coming year. It also boosted its dividend by10%.

On October 9, Keith Buchanan, Senior Portfolio Manager at GLOBALT Investments, appeared on CNBC and stated that the markets show mixed signals of risk and optimism.

US stocks jumped Monday in a broad rebound, bouncing back from Friday's rout after President Trump played down the escalating US trade standoff with China and said it "will all be fine!" Stocks recouped some of Friday's hefty losses after Trump dialed back his Friday threat to impose an additional 100% tariff on Chinese goods from Nov.

In the latest quarter, the largest U.S. banks led by JPMorgan Chase (JPM.N), Goldman Sachs (GS.N), and Bank of America (BAC.N) flagged big profits from the booming business of prime brokerage, which involves lending cash and securities to hedge funds to help execute large trades.

U.S. stocks seesawed on Wednesday, with Wall Street's major indexes gaining back some ground after session lows as upbeat earnings reports eclipsed U.S.-China trade tension worries. The benchmark S&P 500 (SP500) was last +0.