Taiwan Semiconductor Manufacturing reported a 30% increase in third-quarter sales on Wednesday, as major U.S. technology companies continue to invest billions of dollars in artificial intelligence initiatives.

Based on monthly sales figures provided by the company, revenue for the three months ending in September totaled NT$989.9 billion ($32.5 billion), surpassing analysts' average expectation of NT$962.8 billion. Shares of Asia's most valuable company have risen more than 30% this year, benefiting from the ongoing AI boom.

Taiwan Semiconductor Manufacturing serves as the preferred chip manufacturer for leading AI accelerator design companies, including NVIDIA Corporation, AMD Inc., and Broadcom Inc. The company also produces chips for iPhones and other Apple products. While the consumer electronics market has experienced slow growth recently, Taiwan Semiconductor Manufacturing's advancement toward more sophisticated manufacturing technologies has resulted in higher profit margins per product.

In the AI sector, U.S. technology companies ranging from NVIDIA to OpenAI are investing billions of dollars to enhance cloud computing capabilities. Company executives view this as a crucial long-term growth driver. Despite recent concerns about these companies creating a massive bubble, Taiwan Semiconductor Manufacturing's latest sales data indicates that current AI demand remains robust.

The company is scheduled to release its complete third-quarter results on October 16.