Nvidia, Broadcom Rise as TSMC's Soaring Revenue Fuel Chipmakers' Rally (1)

$NVIDIA (NVDA.US)$ shares advanced, tracking gains across the chipmaking industry, after an almost 60% surge in $Taiwan Semiconductor (TSM.US)$'s revenue fueled optimism that the sector can grow earnings fast enough to keep up with soaring market value.

Chipmakers rallied, with the PHLX Semiconductor Index's 0.9% gain outperforming the $S&P 500 Index (.SPX.US)$'s 0.1% rise and the $NASDAQ 100 Index (.NDX.US)$'s 0.2% increase.

Earlier Friday, Taiwan Semiconductor, known as TSMC, issued its monthly release showing its revenue for April reached 236.02 billion New Taiwan dollars ($7.3 billion), up from NT$147.9 billion a year earlier. The world's largest contract chipmaker that supplies to Nvidia also said its board approved a NT$4 per share dividend for the first quarter, payable to holders on Sept. 18.

TSMC shares gained 4.6% to $141.29 in New York trading. $Micron Technology (MU.US)$ advanced 2.8% to $121.085, making the stock the third-biggest gainer on the $Nasdaq Composite Index (.IXIC.US)$. $Broadcom (AVGO.US)$ rose 2% to $1,332.32.