(Reuters) -Shares of Nvidia hit a record high amid a rally in U.S. chip stocks on Thursday after industry bellwether TSMC's strong sales forecast boosted investor optimism about demand for processors used to power artificial intelligence applications.

If there was any concern about the health of the artificial-intelligence chip market currently, Taiwan Semiconductor Manufacturing Co. put that to rest with its latest results — setting up Nvidia Corp.

Major U.S. indexes advanced at midday Thursday as a strong report on demand for artificial intelligence chips boosted the tech sector.

Two days after a broad semiconductor-stock sell-off driven by a light forecast from the Dutch firm ASML, chipmakers rallied on Thursday on TSMC's strong results. TSMC itself climbed as much as 13% in New York trading, while major industry players Nvidia, Broadcom, and Micron each rose roughly 4% at intraday highs.

US chip stocks rise following TSMC's strong AI chip sales forecast, with Nvidia, AMD, and others benefiting from renewed investor confidence.

Nvidia shares hit another record high Thursday as concerns earlier this week about a softening in the semiconductor market was eased by TSMC's earnings report.

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. stock index futures advanced on Thursday, with an upbeat forecast from TSMC boosting semiconductor stocks, while investors awaited key economic data for clues on the U.S. consumer's financial health.