U.S. stock futures turned positive early Friday, lifted by a surge in chip stocks following TSMC's record quarterly profit. The Taiwan Semiconductor Manufacturing Company signaled robust artificial intelligence demand, driving a 4.4% jump in its U.S. shares. This optimism spread to NVIDIA and AMD, helping the market rebound.

The rally helped Wall Street snap a two-day losing streak, with Morgan Stanley and Goldman Sachs also posting strong earnings. Tech stocks, which had faced profit-taking earlier in January, found fresh momentum. TSMC's CEO flagged a sharp increase in capital spending for 2026 to meet outsized demand, reinforcing the industry's growth trajectory.

Investors now look to the ongoing fourth-quarter earnings season, with major companies like Netflix and Intel set to report. The market's recovery also comes after recent geopolitical tensions between the U.S. and Iran had rattled sentiment. Sustained strength in chipmakers could set the tone for broader tech performance in coming weeks.