The chipmaker's U.S.-listed shares soared 11.6%, while AI-trade favorite and TSMC customer Nvidia gained 2.6%, touching a record high. The optimism spread to other chip stocks, sending the broader Philadelphia SE Semiconductor index 2.2% higher.

Wall Street rose as the S&P 500 and Dow hit record highs, driven by surging chip stocks following TSMC’s robust forecast and strong retail sales. Despite gains, healthcare stocks declined, and analysts warned of stretched valuations and potential volatility ahead of the U.

U.S. stock indexes were set to rise on Thursday, with an upbeat forecast from TSMC boosting semiconductor stocks, while a bigger-than-expected rise in September retail sales pointed to a strong U.S. consumer.