TSMC, the leading contract chip manufacturer globally, announced on Wednesday that its third-quarter revenue significantly surpassed both market expectations and its own projections, driven by strong demand for artificial intelligence (AI) technologies.

Taiwan Semiconductor Manufacturing Co, which counts major companies like Apple and Nvidia among its clients, has positioned itself at the forefront of the AI revolution, enabling it to navigate the decline in demand that followed the pandemic.

For the period from July to September this year, TSMC reported revenue of T$759.69 billion ($23.62 billion), as calculated by Reuters, exceeding the LSEG SmartEstimate of T$750.36 billion ($23.33 billion) based on the analysis of 23 experts.

This figure marks a year-on-year increase of 36.5%, compared to $17.3 billion during the same period last year.

While TSMC typically provides monthly revenue figures in Taiwan dollars, it reports quarterly revenue and earnings outlooks in U.S. dollars, making direct comparisons somewhat challenging.

During its latest earnings call in July, TSMC had projected third-quarter revenue to fall between $22.4 billion and $23.2 billion.

In September alone, the company reported a remarkable 39.6% year-on-year revenue increase, reaching T$251.87 billion.

The brief revenue statement did not include further details.

TSMC is scheduled to release its complete third-quarter earnings on October 17, at which time it will also revise its outlook.

The company's stock, listed in Taipei, has surged 72% this year, outpacing the broader market's 26% increase.

On Wednesday, the stock closed up 1% in anticipation of the revenue announcement.