Artificial intelligence chip stocks led by Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc (NASDAQ:AMD) are trading higher Wednesday after leading contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:TSM) reported June revenue growth of 33% year-on-year.

The preliminary second-quarter revenue grew 32% Y/Y. Taiwan Semiconductor's revenue growth bears testimony to the continued AI frenzy.

Analysts touted Nvidia as the primary AI beneficiary, followed by AMD.

AMD stock also got a boost from the company's deal to acquire Silo AI, a leading AI lab in Europe, in an all-cash transaction worth $665 million.

Helsinki-based Silo AI, with operations in Europe and North America, offers comprehensive AI-driven solutions for easy integration into products, services, and operations. Silo AI also develops advanced open-source multilingual LLMs, including Poro and Viking, on AMD platforms, along with its SiloGen model platform.

AMD held $6.04 billion in cash and equivalents as of March 30, 2024.

Silo AI CEO and co-founder Peter Sarlin will continue to lead the Silo AI team as part of the AMD AI Group. The acquisition will likely close in the second half of 2024.

Nvidia stock gained over 217% in the last 12 months. AMD stock gained 63%.

Price Actions: NVDA shares traded higher by 2.4% at $134.62 at the last check Wednesday. AMD is up 3.3% at $183.05.