Navitas Semiconductor Corp (NVTS) stock soared 5.17% in pre-market trading on Wednesday, as the semiconductor sector experienced a broad rally following better-than-expected earnings from ASML Holding, a key player in the chip-making equipment industry.

The upward movement in Navitas shares was part of a larger trend across chip stocks, with several companies seeing significant pre-market gains. SOXL, a leveraged semiconductor ETF, jumped 5.7%, while industry giants like ASML and TSMC rose over 3%. Other major players such as Nvidia, Broadcom, Super Micro, and AMD also saw increases of around 2%.

The catalyst for this sector-wide surge was ASML's impressive third-quarter results. The Dutch semiconductor equipment manufacturer reported bookings of €5.4 billion ($6.3 billion), surpassing analyst expectations of €4.9 billion. This strong performance is attributed to the growing demand for chip-making machines, driven by substantial investments in artificial intelligence infrastructure. As the sole producer of extreme ultraviolet lithography machines essential for manufacturing sophisticated AI chips, ASML's positive outlook has boosted investor confidence across the semiconductor industry, including smaller players like Navitas Semiconductor.