Taiwan Semiconductor Manufacturing stock rose after the company posted a big jump in profit and sales for the third quarter, beating analysts’ estimates. It’s a sign of strong demand for artificial-intelligence chips.

TSMC's blockbuster results will be a welcome surprise to investors after ASML's earnings sent semiconductor stocks tumbling earlier this week.

Taiwan Semiconductor Manufacturing Company has announced a forecast-busting quarterly profit amid surging demand for chips used to power artificial intelligence. TSMC, the world’s largest contract chipmaker, reported a net profit of 352.3 billion Taiwanese dollars ($10.1bn) for the third quarter, up 54.2 percent from the same period last year.