Shares of Taiwan Semiconductor Manufacturing Company Ltd. ( TSM ) , the world’s largest contract chipmaker and a major Apple and Nvidia supplier, bounced back strongly in premarket trading on Thursday after the nearly 8% plunge seen in the previous session,

Sentiment toward the Hsinchu, Taiwan-based company improved after it reported second-quarter earnings that exceeded expectations and grew both year-over-year and quarter-over-quarter. The robust performance reflected a strong uptake of its most advanced processor node technologies for high-performance computing which are vital for artificial intelligence technology-related applications and machine learning.

More importantly, the company sees the strong demand to continue in the second half. The third-quarter revenue exceeded expectations and CEO C.C. Wei said he continues to expect 2024 to be “a strong growth year for TSMC.”

TSMC’s earnings have proved healthy for the chip and other tech stocks, which were battered on Wednesday after both Donald Trump and President Joe Biden sent them into a tailspin. The former said Taiwan should pay the U.S. for defense, while the Biden administration suggested more China chip export curbs.

The premarket session also saw other chip stocks, including Nvidia , Super Micro Computer ( SMCI ) and AMD , rising over 1%.

In premarket trading, TSMC rose 2.74% to $175.80, according to Benzinga Pro data.

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