AI Chip stocks, including Nvidia (NVDA) and Intel (INTC), got a bump higher on Thursday after TSMC announced a 39% increase in profits in Q3 2025. TSM shares soared to record highs when TSMC reported net income of NT$325.3 billion ($10.1 billion), in fact, exceeding the expectations of analysts. TSM earnings and the strong results showed the strength of AI chip demand that is currently driving semiconductor growth. Nvidia rose 1.2%, whereas Marvell Technology (MRVL) gained 1.3% and Broadcom (AVGO) climbed 2.4%.

TSMC CEO C.C. Wei says that the AI train remains chugging along and is likely to continue through to 2026. “Recent developments in the AI market continue to be very positive. Thus, our conviction in the AI mega trend is strengthening.”

NVDA is down 5% in the past week, but the TSMC earnings seemingly triggered a quick rebound. Intel, meanwhile, saw a brief climb by 2% before correcting back in price to $36. Nvidia recently received a price forecast upgrade from HSBC, with the Bank upping NVDA shares to Buy from Hold on resilient earnings growth potential.

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AI stocks also surged in early October after OpenAI saw its valuation breach $500B. The ChatGPT developer is now the most valuable startup by surpassing Elon Musk’s SpaceX.

“This isn’t just a transient spike. TSMC’s blowout quarter tells a clear story … this is no longer a cyclical story, it’s structural,” said AvaTrade’s chief market analyst Kate Leaman. Wall Street has favored tech stocks in 2025, especially those that feature in the chip/AI industry. YTD, Nvidia is up over 35%, while TSMC is up over 50%. Looking ahead, for the fourth quarter, TSMC expects revenue between $32.2 billion and $33.4 billion and gross margins of 59% to 61%. Breaching these expectations could send Taiwan Semiconductor stock even higher at the end of this year.