TSMC, the world's largest contract chipmaker, said on Thursday it expects strong growth in its business to be sustained as it reported a forecast-beating 54% jump in quarterly profit due to soaring demand for chips used in artificial intelligence (AI).

The world’s largest contract chip maker reported record net profit for the third quarter, driven by strong demand for smartphone and artificial-intelligence chips.

The AI boom has helped drive up TSMC shares, with its Taipei-listed stock leaping 75 per cent so far this year, compared with a 28 per cent gain for the broader market, giving the company a market capitalisation of around $840 billion.