Taiwan Semiconductor Manufacturing Company (TSM) (TSMC) is expected to beat third-quarter revenue expectations when it reports quarterly results on Thursday.

The Taiwanese chipmaker is expected to report revenue of $23.3 billion in the September quarter, according to analyst estimates from FactSet.FDS). Earlier this month, Bloomberg reported that the company had sales of $23.6 billion for the quarter. The company has discontinued its Third quarter forecast between $22.4 and $23.2 billion. Meanwhile, TSMC is expected to report net income of $9.3 billion in the third quarter, according to FactSet.

Shares of the chipmaker lost 2.63% at Tuesday's close. However, the stock is up 84.3% so far this year.

TSMC announced net sales of $7.82 billion for September — an increase of 0.4% month-on-month and an increase of almost 40% year-on-year. TSMC said January-September sales rose 31.9% year over year.

The chip manufacturer, to which Nvidia belongs (NVDA) and Apple (AAPL) as customers experienced an increase in sales as a result of the boom in generative artificial intelligence. In July, TSMC exceeded analysts' expectations for the second quarterreported revenue of $20.82 billion – a 40% increase from the previous year.

Wendell Huang, TSMC's chief financial officer, said: a statement that the company expects smartphone and AI-related demand to drive business forward in the third quarter. TSMC CEO CC Wei said he expects chip production to keep pace with demand by 2025 or 2026.

In August, TSMC reported Revenue of NT$250.87 billion ($7.8 billion) – an increase of 33% year over year. The company's August sales fell 2.4% compared to July, in which a Increase of 45% compared to the previous year.