Leading manufacturer of advanced chips used in artificial intelligence applications, Taiwan Semiconductor Manufacturing Co expects a 40 percent increase in third-quarter earnings from the result of rising demand.

It gives credit to its customers such as Apple and Nvidia, for being able to draw benefits from the trend towards AI.

An analysis from LSEG SmartEstimate indicates that TSMC could record a net profit of T$298.2 billion ($9.27 billion) for the quarter that concluded on September 30.

Forecasts from analysts with higher consistency of accuracy are given more weighting by SmartEstimates.

This forecast is contrasted with the T$211 billion third-quarter net profit in 2023.

Last week, TSMC easily outperformed market forecasts when it revealed a spike in third-quarter sales, as reported in Taiwan dollars.

During its results conference, the company provides an outlook for its revenue in US dollars.

TSMC will provide an update on its outlook for the current quarter and the entire year, including its capital expenditures as it strives to grow output, during its quarterly results call on Thursday at 0600 GMT.

Although it claims that Taiwan will still be the primary location for manufacturing, TSMC is investing billions of dollars in the construction of new factories abroad, including three $65 billion plants in the state of Arizona.

TSMC revised its capital expenditure intentions for this year to between $30 billion and $32 billion, from a previous forecast of $28 billion to $32 billion, and increased its full-year revenue forecast during its most recent results call in July.

The most valuable firm in Asia has seen a rise in share prices due to the AI boom; TSMC's Taipei-listed stock has soared 77 percent this year so far, while the market has gained 28 percent.

Five decades after being the global leader in semiconductors, Intel is going through one of its toughest moments as losses increase at the contract manufacturing unit it is developing in an attempt to take on TSMC.