U.S.-listed shares of Taiwan Semiconductor Manufacturing Company (TSM) rose 9.6% in premarket trading, putting the stock at an all-time high after its third-quarter earnings beat analysts' estimates. TSMC posted a 54% jump in profits and raised its full-year outlook.

TSMC makes chips for Nvidia (NVDA) and its competitor Advanced Micro Devices (AMD), as well as Broadcom (AVGO) and many other technology companies. Nvidia shares rose 3%, AMD rose 2.7% and Broadcom rose 2.8% premarket on the news.

Here's a look at TSMC's results:

• Adjusted earnings per share of 12.54 New Taiwan dollars ($0.39) versus NT$11.55 ($0.36) expected

• Sales of 759.7 billion New Taiwan dollars (US$23.5 billion) versus expected NT$751.1 billion (US$23.3 billion).

The rally in chip stocks is partially recouping the sector's losses from earlier this week, sparked by fears about possible further U.S. trade restrictions and a gloomy report from semiconductor equipment maker ASML.

Analysts from Needham, Bernstein, Barclays and other investment firms reiterated their buy ratings on TSM stock Thursday morning. Of the Wall Street analysts covering the company tracked by Bloomberg, about 23 recommend buying the stock, while only one analyst has a hold rating.

Analysts on average expect the stock to rise to about $217 over the next 12 months, according to Bloomberg data.