Shares of technology companies rallied after a rosy projection from the world's largest contract semiconductor manufacturing company drove the Nasdaq 100 to an all-time closing high.

Taiwan Semiconductor Manufacturing said a pervasive inventory glut throughout the semiconductor supply chain that punished all chip makers in 2023 appeared to have cleared. The Nasdaq 100, which represents the largest tech stocks traded on the Nasdaq market, closed at its highest level ever at 16,982. The iShares Semiconductor exchange-traded fund, which tracks the PHLX SOXX index of semiconductor firms, rose by more than 3% and is now up by more than 4% for the year to date.

Nvidia shares are up by almost 19% for the year to date, a pace that, if sustained, would make the maker of AI-supporting chips the world's largest company by market capitalization by year end, even if larger rivals such as Apple and Microsoft sustained gains at their current, markedly slower pace.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

01-18-24 1755ET