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.

(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.

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.