All members of the PHLX Semiconductor Index were in positive territory Thursday as TSMC offered upbeat commentary on the sector.

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.

Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, has further raised its growth outlook on the back of an artificial intelligence boom and a broad-based recovery in other sectors,

ASML slashed guidance on Tuesday, leading to a sell-off in chip stocks and raising the stakes for TSMC's upcoming earnings report.

It’s a sign of strong demand for artificial-intelligence chips. Taiwan Semi, or TSMC, said revenue in U.S. dollars in the third quarter jumped 36% from a year earlier to $23.50 billion. Its net profit rose 54% on the year to the equivalent of $10.

Chip stocks rose higher Thursday after a blowout earnings report by Taiwan Semiconductor Manufacturing (NYSE:TSM), the world’s largest producer of advanced chips and a key player in the ongoing AI boom.

World’s largest contract chipmaker Taiwan Semiconductor (NYSE:TSM), whose customers include tech giants like Apple (AAPL) and Nvidia (NVDA), is expected to announce its third quarter earnings on Thursday,