US semiconductor index jumps as TSMC signals strong AI chip demand

NEW YORK: An index of semiconductor stocks was up more than 2% on Thursday and chip stocks were helping the broader market after Taiwan Semiconductor Manufacturing cited strong demand for high-end chips used in artificial intelligence (AI).

U.S.-listed shares of the world’s largest contract semiconductor maker, which also forecast more than 20% growth in 2024 revenue, were last up 7.2%, the biggest percentage gainer for the day on the semiconductor index. The S&P 500 was up 0.3%.

The semiconductor index rose 65% in 2023 and hit an all-time intraday high on Dec. 28 of 4,233.73, boosting the overall market amid optimism over AI demand.