TSMC's blockbuster results will be a welcome surprise to investors after ASML's earnings sent semiconductor stocks tumbling earlier this week.

AI chip giant Nvidia (NVDA.O), which had briefly surpassed Apple as the world's most valuable company the previous day, dropped 4.5%, wiping out about $158 billion from its market cap, widening the gap with Apple's value of $3.56 trillion.

ASML and TSMC recently released their latest financial results, revealing contrasting performances but converging on a shared outlook for the semiconductor sector. TSMC reported strong demand driven by smartphones and AI,

It’s a sign of strong demand for artificial-intelligence chips. Taiwan Semi, or TSMC, said revenue in U.S. dollars in the third quarter jumped 36% from a year earlier to $23.5 billion. Net profit rose 54% on the year to the equivalent of $10.