In a positive turn of events, Applied Materials, ASML Holding, and Taiwan Semiconductor Manufacturing Company (TSMC) experienced significant jumps in their share prices on Wednesday. The surge was fueled by Barclay's upgrades to Applied Materials and TSMC, as well as favorable industry trends related to Chinese chip orders and potential price increases for AI chips manufactured by TSMC.

Barclays analyst Tom O'Malley cited a strong increase in orders for foreign semiconductor manufacturing equipment in China, as the country aims to become self-sufficient in chip manufacturing. O'Malley also predicted that semiconductor companies would make aggressive capital investments in the United States, thanks to subsidies under the U.S. CHIPS Act. This positive outlook for the industry bodes well for both Applied Materials and ASML Holding, resulting in an upward trend for their respective stocks.

TSMC, on the other hand, bounced back from a decline the previous day and experienced a 6.9% gain. This was partially attributed to Barclays' upward revision of its price target on the stock, based on the increasing demand for 2 nanometer chips. The analyst emphasized that these high-demand chips would be a significant driver of profits for TSMC and would lead to increased investment in chip manufacturing equipment. There were also reports that TSMC might raise prices on its chip manufacturing contracts to compete for a larger share of the profits from artificial intelligence chips, following Nvidia's success in this lucrative market.

The positive news surrounding all three semiconductor stocks has generated significant interest from investors. At 10:30 a.m. ET, Applied Materials' stock saw a 4.9% increase, ASML Holding rose by 7.4%, and TSMC's shares surged by 6.9%.

When considering investment opportunities, it is worth noting that none of the three stocks appear to be cheap. TSMC has the fastest growth rate at a little over 20%, resulting in a PEG ratio of 1.5. In comparison, Applied Materials and ASML Holding have higher PEG ratios of 2.4. Nonetheless, TSMC's growth potential positions it as the most attractive option among the three.

While the positive momentum enjoyed by these semiconductor stocks is encouraging, investors should conduct thorough research and consider their respective risk appetites before making any investment decisions.

Disclaimer: Rich Smith does not hold any positions in the mentioned stocks. The Motley Fool holds positions in and recommends ASML, Applied Materials, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool also recommends Barclays Plc.