The TSMC report renews investor sentiment in the technology sector with earnings exceeding expectations.

TSMC, the global giant in chip manufacturing and design, has released its financial performance report for the third quarterly period, which exceeded Wall Street expectations, resulting in the stock hitting a historic high in pre-market trading in the U.S.

In the third quarter, TSMC, listed on both the New York and Taipei Stock Exchanges, reported a net profit exceeding 325.26 billion New Taiwan Dollars (approximately $10.1 billion), marking a 54.2% increase compared to the same period last year.

According to the statement, the Taiwanese company noted that quarterly revenues jumped by 36% year-on-year, reaching $23.5 billion. Earnings per share rose to $1.94, while Wall Street estimates had predicted EPS growth to $1.79 for the third quarter.

Commenting on the business results, TSMC CEO C.C. Wei stated that demand related to artificial intelligence from customers is incredibly strong. He added that TSMC's operations and activities in the third quarter were supported by strong demand for artificial intelligence, smartphones, and leading technologies.

The executive also anticipated continued activity during the fourth quarter and strong demand for leading technologies. TSMC projected an overall revenue increase of about 30% for the entire year.

TSMC's report has reinvigorated risk appetite toward technology stocks, especially after sharp sell-offs of ASML shares— the only company globally specializing in chip manufacturing equipment—over the past two sessions affected investor sentiment toward technology shares worldwide.

Global technology stocks have also been adversely impacted following reports that the Biden administration is considering restricting exports of advanced chips to certain countries.

As a result of these positive developments, TSMC shares listed on the New York Stock Exchange (NYSE: TSM) surged approximately 7.90%, or by $1.81, trading near $202.29 in pre-market activity.