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 stock was rising 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.

Strong quarterly earnings reports from bellwether names in the financial and transportation sectors helped offset continued weakness in chip stocks to send markets higher on Wednesday. Energy retreated on sliding oil prices,