Navitas Semiconductor Corp (NVTS) shares surged 9.23% in intraday trading on Thursday, outperforming the broader semiconductor sector amid a rally triggered by Taiwan Semiconductor Manufacturing Company's (TSMC) impressive third-quarter earnings report.

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, which beat market expectations and set a new record, was primarily driven by strong demand for semiconductors used in artificial intelligence applications. The news sparked a sector-wide rally, with several chip stocks seeing significant gains in pre-market and early trading.

While TSMC's U.S.-listed shares rose over 2%, Navitas Semiconductor's exceptional 9.23% jump outpaced many of its peers. Other notable movements in the sector included 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. Navitas, known for its gallium nitride (GaN) power semiconductors, appears to be benefiting from this positive sentiment and the growing interest in next-generation chip technologies.