Shares of leading-edge foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) and its equipment suppliers ASML Holdings (NASDAQ: ASML) and KLA Corporation (NASDAQ: KLAC) rallied during the month of May, rising 11.2%, 17.1%, and 14.6%, respectively, according to data from S&P Global Market Intelligence. All three companies reported earnings in April, but second-quarter guidance from Nvidia (NASDAQ: NVDA) on May 24 lifted all three stocks, as each of these names plays a key role in manufacturing Nvidia's chips.

Given the high enthusiasm over Nvidia's guidance and the outlook for strong multiyear growth in artificial intelligence (AI) applications, it's no surprise these chip manufacturing stocks were riding high last month...and it looks as if the positive trend may continue.

On May 24, Nvidia reported its first-quarter earnings. While its Q1 earnings came in above expectations, it was really management's blowout second-quarter guidance that catapulted the stock higher along with other related semiconductor names.

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Source Fool.com