Nvidia shares strengthened during trading after Taiwan Semiconductor Manufacturing Company released quarterly results that exceeded market expectations, boosting optimism around demand for artificial intelligence solutions.

TSMC reported record quarterly revenue, which investors viewed as confirmation of sustained demand for advanced semiconductors used in AI infrastructure. As the company is often seen as a bellwether for the entire industry, the positive data quickly lifted sentiment across the sector.

Shares of leading chipmakers and equipment suppliers, including Nvidia, AMD, and ASML, moved higher on the news. Additional support came from TSMC’s plans to increase capital expenditures, signaling confidence in continued demand.

As a result, Nvidia shares closed more than 2% higher. The move is seen less as a shift in the long-term trend and more as confirmation of the resilience of the current AI-driven growth cycle.