Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, reported a 39.1% jump in third-quarter net profit on Thursday, surpassing analyst expectations as strong demand for semiconductors powering artificial intelligence applications fueled growth.

The company, whose clients include Nvidia and Apple, posted net profit of T$452.3 billion ($14.76 billion) for the July-September quarter. This comfortably exceeded the T$417.7 billion LSEG SmartEstimate, which aggregates forecasts from analysts with a track record of accuracy.

The results underscore TSMC’s central role in the AI-driven semiconductor boom, positioning the Taiwanese foundry as one of the biggest beneficiaries of surging chip spending worldwide.