TSMC rose 2.3% in premarket trading. NVIDIA fell 1%, Advanced Micro Devices fell 2%.

Taiwan Semiconductor Manufacturing’s quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of AI hardware spending will extend into 2025.

The go-to chipmaker for Nvidia Corp. and Apple Inc. reported a 39% rise in October-December revenue to NT$868.5 billion ($26.3 billion), based on calculations off monthly disclosures. That compares with an average estimate of NT$854.7 billion.

The strong showing from Taiwan’s largest company bolsters expectations that big tech companies from Alphabet Inc. to Microsoft Corp. will continue to build and upgrade datacenters at a rapid clip to propel AI development. This month, AI server maker Hon Hai Precision Industry Co. reported better-than-expected sales, while Microsoft outlined plans to spend $80 billion this fiscal year on datacenters.

Goldman Sachs upgraded NXP Semiconductors NV to a buy rating with a $257 price target and downgraded Advanced Micro Devices to a Hold rating with its price target of $129.

The US wants to curb the sale of AI chips used in data centers on both a country and company basis, with the goal of concentrating AI development in friendly nations and getting businesses around the world to align with American standards, according to people familiar with the matter.Joe Biden’s administration plans one additional round of restrictions on the export of artificial intelligence chips from the likes of NVIDIA just days before leaving office, a final push in his effort to keep advanced technologies out of the hands of China and Russia.

The US wants to curb the sale of AI chips used in data centers on both a country and company basis, with the goal of concentrating AI development in friendly nations and getting businesses around the world to align with American standards, according to people familiar with the matter.