FX168 Financial News Agency (North America) News United States chip stocks rose across the board on Thursday, industry leader Taiwan Semiconductor's strong sales forecast enhanced investors' optimistic expectations for demand for AI-driven processors.

As the world's largest contract chip manufacturer, Taiwan Semiconductor has raised its annual revenue growth forecast and stated that the sales of AI chips will account for more than ten percentage points of its annual revenue.

Taiwan Semiconductor, listed in the United States, rose by nearly 11%, with the company's market cap surpassing 1 trillion USD.

(Source: Google)

This growth reflects Taiwan Semiconductor as a leading AI chip manufacturer, inspiring investors' confidence in the future of the chip manufacturing industry. In recent years, due to the surge in demand for chips from large tech companies, chip manufacturers' market caps have seen significant growth.

One of Taiwan Semiconductor's customers, AI chip leader NVIDIA, saw its stock price rise by over 2%. Its smaller competitor AMD also saw a slight increase in stock price. In addition, the stocks of Broadcom, Qualcomm, and Micron all rose.

AJ Bell investment analyst Dan Coatsworth said: 'Taiwan Semiconductor is one of NVIDIA's main suppliers, so Taiwan Semiconductor's performance directly affects this U.S. chip giant.'

Intel's stock price also rose by 1.3%, despite the chip manufacturer's efforts to expand its chip manufacturing facilities to challenge Taiwan Semiconductor in the advanced manufacturing field. Analysts expect it will take several years for Intel to break through in this area.

Previously, chip manufacturing equipment giant ASML significantly lowered its performance expectations, leading to concerns in the market about the slow recovery of semiconductor demand for non-artificial intelligence applications. However, Taiwan Semiconductor's optimistic outlook has brought some confidence and breathing space to investors.

Kotswos added, 'Fortunately, everything is going smoothly in the field of artificial intelligence.' Taiwan Semiconductor indicated that there is still strong demand for artificial intelligence-related businesses and smart phones, which means that the chip industry is still maintaining a strong development momentum.

Against the backdrop of active trading on Wall Street, investors are increasing their holdings of semiconductor stocks. So far this year, Taiwan Semiconductor's US-listed stocks have soared by over 80%, while Nvidia's stock price has more than doubled.