TSMC, the world's largest contract chipmaker, reported on Wednesday third-quarter revenue that easily beat both the market and company's own forecasts as it reaped the benefit from artificial intelligence (AI) demand.

Taiwan Semiconductor Manufacturing Co, whose customers include Apple and Nvidia, has been at the forefront of the march towards AI that has helped it weather the tapering off of pandemic-led demand.

Revenue in the July-September period of this year came in at T$759.69 billion ($23.62 billion), according to Reuters calculations, compared with an LSEG SmartEstimate of T$750.36 billion ($23.33 billion) drawn from 23 analysts.

That represents growth of 36.5% on-year, compared with $17.3 billion in the year-ago period.

It is not a direct comparison as TSMC provides monthly revenue data only in Taiwan dollars, but gives quarterly revenue figures and its outlook on its quarterly earnings calls both in U.S. dollars.

On its most recent earnings call in July, TSMC forecast third quarter revenue in a range of between $22.4 billion to $23.2 billion.

For September alone, TSMC reported revenue jumped 39.6% year-on-year to T$251.87 billion.

The company did not provide details in its brief revenue statement.

TSMC will report full third quarter earnings on Oct. 17, when it will also update its outlook.

The company's Taipei listed stock has risen 72% so far this year, compared with a 26% gain for the broader market.

It closed up 1% on Wednesday ahead of the release of the revenue numbers.