Taiwan Semiconductor Manufacturing Company (NYSE:TSM), the world's largest contract chipmaker, reported a larger than expected quarterly performance this week, with net income rising 35% year-over-year to almost $7 billion and revenues of roughly $18.5 billion, which exceeded analyst expectations by around 5%. The results help emphasize the sustained global demand for advanced semiconductor technology, and more specifically, investments in artificial intelligence.

TSMC is at the center of the global semiconductor supply chain, producing GPUs and AI accelerators that help power some of the largest companies in the world, such as NVIDIA, AMD, and Apple.

The technology sector responded positively to the earnings release. ...