Shares of computer processor maker AMD (NASDAQ: AMD) jumped 5.9% during the afternoon session after positive results from its key manufacturing partner, TSMC, and news of a collaboration with the French government boosted investor confidence.

AMD’s primary manufacturing partner, TSMC, released stellar financial results that highlighted robust demand for advanced chips used in AI accelerators and high-performance computing. The success of TSMC, viewed as a bellwether for the semiconductor sector, was seen as a positive signal for AMD’s future growth, sparking a rally across the sector.

Adding to the enthusiasm was AMD’s announcement of a multi-year collaboration with the French government to support the country’s national AI strategy. The partnership aims to accelerate local AI innovation and strengthen AMD’s position in the data center and sovereign AI markets.

Since the beginning of the year, AMD shares have risen by 22.6%, setting a new 52-week high at $274.04 per share. This current growth offset a recent decline that occurred three weeks ago following the announcement of Google’s TurboQuant algorithm, which had sparked market concerns about a potential decrease in demand for memory chips.