On January 16, 2025, Taiwan Semiconductor Manufacturing Co (TSMC) reported fourth-quarter revenue of $26.88 billion, surpassing analyst expectations and reflecting a significant year-over-year increase of 38.8%.

The company is strategically positioned to capitalize on the growing demand for AI chips, serving major clients such as Apple and Nvidia.

Meanwhile, U.S. banks have achieved record profits, driven by a thriving financial market and a resurgence in mergers and acquisitions.

The upcoming inauguration of President-elect Donald Trump is expected to further boost banking revenues through increased deal-making, with analysts anticipating a 'Trump bump' in the investment banking sector.

Banking executives are optimistic about stronger deal-making activity in 2025, supported by anticipated interest rate cuts from the Federal Reserve and pro-business sentiments from the new administration.

The banking sector has benefitted from elevated interest rates as the Federal Reserve raised rates to combat inflation following the COVID-19 pandemic.

Despite inflation pressures, underlying inflation trends improved, slowing to 3.2% in December, which was better than analysts expected.

CEO Jamie Dimon emphasized the resilience of the U.S. economy, marked by low unemployment and healthy consumer spending.

However, despite increased profits, some banks are experiencing a decrease in loans and leases, raising concerns about future demand without further rate reductions.

Analysts have warned that major changes in capital allocation are not expected soon due to uncertainties in the regulatory environment.

Bank of America's diverse operations, including Consumer Banking and Global Wealth Management, showcase its extensive service offerings.

Overall, the financial landscape is evolving, with TSMC's growth in AI chips and the banking sector's record profits setting the stage for a dynamic year ahead.