Taipei-listed shares in TSMC hit a record high on Friday after the chipmaker posted forecast-beating third-quarter earnings and predicted a rosy outlook on strong artificial intelligence (AI) demand.

Taiwan Semiconductor Manufacturing Co said its sales were boosted by strong demand from smartphone makers and artificial intelligence firms

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.

Shares of US chipmakers surged before Thursday’s market open, driven by a positive sales forecast from Taiwan Semiconductor Manufacturing Co. (TSMC). The world’s largest contract chipmaker raised its annual revenue growth expectations and highlighted that AI chips will contribute a significant portion of its full-year revenue,