Taiwan Semiconductor Manufacturing Co (NYSE:TSM) stock gained on Thursday after the contract chipmaker delivered third-quarter results that blew past analyst expectations, driven by global demand for its advanced processor technologies essential for artificial intelligence applications.

As a key supplier to tech giants like Nvidia (NASDAQ:NVDA) for its graphics processing units (GPUs) and Apple (NASDAQ:AAPL) for its smartphones, the company’s strong results reflect its critical role in the industry ecosystem. The company also provided an optimistic revenue forecast for the fourth quarter.

Taiwan Semiconductor reported quarterly net sales of $33.1 billion (989.9 billion New Taiwanese dollars), up 30.3% year-over-year (Y/Y), topping the analyst consensus estimate of $31.5 billion. Net sales grew 6.0% quarter over quarter (Q/Q).

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Net income and earnings per share were $15.10 billion (451.76 billion New Taiwanese dollars) and $2.92 (87.22 New Taiwanese dollars), up by 39.0% Y/Y, topping the analyst consensus estimate of $2.59. 

In U.S. dollar terms, revenue growth was 40.8% Y/Y and up by 10.1% Q/Q. The top-line performance topped the company’s guidance of $31.8 billion to ...