Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), the world’s leading contract chipmaker, reported a solid third-quarter profit, surpassing Wall Street expectations thanks to persistent demand from the artificial intelligence sector. The robust results and an optimistic forecast sent the shares of the Taiwanese company soaring over 12% intra-day today. For the quarter, TSMC recorded a net profit of T$325.26 billion ($10.1 billion), topping the T$300.2 billion predicted by analysts. Revenue for the third quarter rose to T$759.69 billion, marking a notable 39% year-over-year increase. The company credited the impressive revenue growth largely to its advanced 3-nanometer chips, which made up 20% of wafer revenue. Looking ahead, TSMC projected fourth-quarter revenue between $26.1 billion and $26.9 billion, alongside an anticipated gross margin ranging from 57% to 59%. Annual revenue growth is expected to be around 30%. While demand for TSMC’s chips tied to AI applications remained strong, other areas of the business showed mixed results. The company’s Digital Consumer Electronics segment, which produces chips for devices like smart TVs and cameras, saw a 19% decline in quarterly revenue. However, revenue from its High-Performance Computing division surged, offsetting the dip in consumer electronics sales and highlighting TSMC’s strategic focus on AI-driven growth.