Navitas Semiconductor Corp (NVTS) shares surged 5.28% in pre-market trading on Thursday, riding the wave of positive sentiment in the semiconductor sector. The rally comes in the wake of Taiwan Semiconductor Manufacturing Company's (TSMC) impressive third-quarter earnings report, which beat market expectations and set a new record.

TSMC, the world's largest contract chipmaker, reported a 39.1% increase in net profit for the July-September quarter, reaching T$452.3 billion ($14.76 billion). This stellar performance, driven by strong demand for semiconductors used in artificial intelligence applications, has sparked a sector-wide rally in chip stocks.

While TSMC's U.S.-listed shares rose 2.4% in pre-market trading, other semiconductor companies also saw significant gains. Navitas Semiconductor's 5.28% jump outpaced its peers, with other notable pre-market movements including a 3% rise in SOXL and gains of over 1% for industry giants like Nvidia, Broadcom, and ASML. This broad-based rally suggests that investors are optimistic about the overall health and growth prospects of the semiconductor industry, particularly in the face of increasing demand for AI-related chips.