US chip stocks rally buoyed by TSMC’s strong sales forecast

On October 17, an increasing trend was seen in US chip stocks. This happened after TSMC released a sales forecast which gained investors’ attention about the demand for processors. These in-demand processors are used to power AI applications.

TSMC is the largest chipmaker contractor around the globe. Recently it shared a positive outlook on annual growth. It conveyed that AI chip sales will make up the mid-teen percent of the revenue for the whole year.

The shares of US-listed TSMC have increased by 9%. This has pumped the market capitalization over $1 trillion.