Taiwan Semiconductor Manufacturing Co (TSMC) shares hit a record high after its quarterly results beat expectations, lifting the entire Asian semiconductor sector. The company reported a 35% jump in net profit, citing robust demand for advanced chips used in artificial intelligence and high-performance computing. This positive sentiment spread across regional markets on Friday.

The rally extended to major chipmakers across Asia. In South Korea, Samsung Electronics and SK Hynix shares gained, while Japanese equipment supplier Advantest also rose. Hong Kong-listed Semiconductor Manufacturing International Corp (SMIC) and Hua Hong Semiconductor advanced, alongside mainland Chinese firms like Yangtze Optical Fibre. Taiwanese suppliers, including United Microelectronics Corporation, surged as well.

TSMC's upbeat outlook reinforces market expectations for a sustained recovery in chip demand, particularly for AI-related hardware. The results suggest that despite broader economic uncertainties, investment in advanced semiconductor technology remains strong. Investors will now watch upcoming earnings from other major chip designers and manufacturers for confirmation of this trend.