Taiwan Semiconductor Manufacturing Company shares are on track to record their strongest annual performance since the Dot Com bubble, as the world's largest contract chipmaker ramped up production of artificial intelligence chips designed by Nvidia and Advanced Micro Devices, driven by surging data center demand. 

Investor enthusiasm for AI trades persists into the final trading days of the year. TSMC shares are up 82% this year, marking their best annual performance since 1999. 

Shares have soared to record highs. 

TSMC is one of three companies capable of manufacturing AI chips at scale to supply data centers following the launch of OpenAI's ChatGPT in 2022. 

The Taiwan-headquartered chipmaker reported a 54% year-over-year jump in third-quarter net profits and lifted its full-year sales outlook on robust AI chip demand.