By Tracy Qu

Taiwan Semiconductor Manufacturing Co. shares rose as trading resumed after the Lunar New Year holiday, helped by strong January sales and bullish sentiment for chip stocks globally.

Shares of the semiconductor giant, which counts Apple, Nvidia and Qualcomm among its customers, climbed 8.4% in early trading, on track for their biggest one-day percentage gain in more than three years. Thursday's rise brought year-to-date gains to 18% and helped push the Taiex 3.0% higher, putting the benchmark index on pace to close at a record.

Arisa Liu, a semiconductor research director at the Taiwan Institute of Economic Research, said TSMC benefited from rising demand from the artificial-intelligence industry and its competitive edge in 3-nanometer process technology used for high-performance computing.

"TSMC's operating performance in 2024 is expected to get rid of the haze of recession in 2023 and turn into a situation of strong growth," she said.

Shares are also helped by signs of improving sales at TSMC. Before the holiday trading break last week, the company reported a 7.9% rise in January revenue from a year earlier, reversing course from an 8.4% fall in December.

Sentiment for chip stocks is rising globally. Arm Holdings, a British chip-design company, has seen its stock advance 68% this year. Shares of U.S. chip maker Nvidia, which have more than tripled in the past 12 months, are 49% higher so far this year.

The Taiex is 3.0% higher at 18645.91, on track to beat its record close of 18526.35 set in January 2022.

Write to Tracy Qu at

(END) Dow Jones Newswires

02-14-24 2352ET