Asian semiconductor equities climbed sharply on Thursday following TSMC’s unexpectedly strong forecast for the year, as the company pointed to robust demand for high-performance chips used in artificial-intelligence infrastructure. TSMC reported a record quarterly profit and raised its full-year revenue outlook, citing major customers ranging from Nvidia and Apple to global data-centre operators, all of which are scaling up their investments in AI hardware.

The favourable outlook triggered broad investor enthusiasm across the chip ecosystem. Companies such as Micron Technology and Samsung Electronics posted solid gains, as market watchers cited tight supplies of high-bandwidth memory critical for AI server applications. Meanwhile, companies specialising in custom-chip design and manufacturing also saw share price lifts, as the hardware “picks and shovels” trade for the AI boom continues to gain traction.

“This isn’t just a short-term uptick,” said one market analyst. “TSMC’s blow-out quarter signals a structural shift, not merely a cyclical rebound.” As large-scale deals in the AI-infrastructure space continue to surface — including multi-billion-dollar acquisitions and chip-supply pacts — investor sentiment has shifted decisively toward companies positioned at the heart of the AI hardware boom.

With the momentum set to continue, semiconductor markets may be entering a new era defined not by cyclical swings in demand but by long-term investment in AI and high-performance computing systems.