Taiwan Semiconductor Manufacturing Company reported a 54% jump in net profit on Thursday as global chipmakers continue to benefit from demand boosted by AI applications.

The company's net profit was 352.3 billion Taiwanese dollars ($10.1 billion) in the July-September quarter, beating the LSEG estimate of 300.2 billion Taiwanese dollars cited by Reuters.

TSMC is the world's largest manufacturer of advanced chips, serving customers such as Apple And Nvidia.

Net sales were $23.5 billion in the third quarter, up 36% year over year. TSMC's gross margin rose to 57.8% in the July-September period, compared to 54.3% in the same period last year.

In the third quarter, “our business was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies,” TSMC said in a statement, referring to its semiconductor nodes.

The company's capital expenditures rose slightly to $6.4 billion in the third quarter, compared to $6.36 billion in the previous three months.

The Taiwanese chipmaker, whose advanced chips are critical to a range of products from smartphones to AI applications, has expanded its manufacturing footprint around the world, making a massive $40 billion foreign investment for two chip factories in Arizona to support the to meet US demand as well as opening its first factory in Japan earlier this year.

TSMC's earnings increase comes in the same week as the Netherlands-based company ASMLwhich supplies machinery to the Taiwanese company, gave a lower-than-expected forecast for net sales, causing shares to plunge.

Some market participants have questioned the long-term resilience of the AI ​​boom and the return on increasing investment in the technology sector – while Young Liu, CEO and chairman of key Apple supplier Foxconn, told CNBC last week that the AI ​​frenzy is “still quite a bit has”. Time to go,” as advanced language models evolve with each new iteration.

This breaking news story will be updated.