U.S. chip stocks rally as TSMC's AI-backed outlook impresses investors

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Taiwan Semiconductor Manufacturing Co,Artificial Intelligence

Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker, raised its expectation for annual revenue growth and said sales from AI chips ...

- U.S. chip stocks rose before the bell on Thursday after industry bellwether TSMC's strong sales forecast fanned investor optimism about demand for processors used to power artificial intelligence applications.

U.S.-listed TSMC shares rose 7%, with the company's market capitalization set to cross $1 trillion if premarket gains hold. TSMC's outlook also offered some respite to investors after deep forecast cuts from chipmaking equipment giant ASML sparked fears of a slower-than-expected recovery in demand for semiconductors not used in AI.

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