The newest artificial intelligence (AI) chip stock in the $1 trillion club is Taiwan Semiconductor Manufacturing Company ( TSM -2.46%). Here's why $1 trillion may be just a milestone in the stock's continued ascension into the ranks of the mega-caps.

All members of the PHLX Semiconductor Index were in positive territory Thursday as TSMC offered upbeat commentary on the sector.

Intel first talked about its third-generation Gaudi AI accelerators in April, then officially launched it in late September alongside its Xeon 6 CPUs. Throughout this period, Intel has been positioning Gaudi 3 as a more affordable competitor to Nvidia's H100 accelerators,