Taiwan Semiconductor Manufacturing Company, one of the world’s largest contract chipmakers, has reported quarterly profit that exceeded analysts’ expectations, supported by continued demand for advanced semiconductors used in artificial intelligence systems.

The results point to continued business activity in the AI supply chain, even as technology shares face pressure in financial markets.

The company manufactures chips designed by major technology businesses and supplies components used in data centers, smartphones, and other electronic devices.

Its advanced manufacturing capabilities have made it a key supplier to companies investing heavily in AI computing infrastructure.

Chief Financial Officer Wendell Huang said the company expects demand to remain strong during the final three months of the year.

That outlook suggests customers continue to require advanced chips for computing systems, despite concerns about the cost of building and operating AI infrastructure.

However, strong financial results did not prevent the company’s US-listed shares from falling during the broader technology sell-off.

Investors have been concerned that rising borrowing costs and high valuations could make it harder for some businesses to justify their spending on AI-related equipment.

The contrasting developments highlight the difference between business performance and investor sentiment.

While TSMC’s results indicate continued demand for advanced chips, the market reaction shows that investors are also weighing future growth expectations, financing costs, and the potential returns from AI investments.

Sources: Associated Press and Reuters.