Taiwan Semiconductor Manufacturing Company on Thursday reported a 39.1% increase in third-quarter profit from last year, beating estimates and hitting a fresh record as demand for artificial intelligence chips stayed strong.

Here are the company’s results versus LSEG SmartEstimates:

• Revenue: NT$989.92 billion new Taiwan Dollars, vs. NT$977.46 billion expected
• Net income: NT$452.3 billion, vs. NT$417.69 billion 

TSMC’s revenue in the September quarter rose 30.3% from a year ago to NT$989.92 billion, also beating estimates.

Quarter over quarter, net income increased 13.6%, marking its second consecutive quarter of profit growth.

TSMC’s high-performance computing division, which encompasses artificial intelligence and 5G applications, made up the majority of third-quarter sales, accounting for 57% of revenues.

As Asia’s largest technology company by market capitalization, TSMC has benefited from the artificial-intelligence boom, producing advanced AI processors for clients such as Nvidia and Apple.

TSMC said advanced chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC’s total wafer revenue in the quarter. 

In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency. 

Growth in TSMC’s most advanced chips drove revenue gains in the third quarter, according to Counterpoint Research Senior Analyst William Li.

“TSMC’s robust revenues are a direct reflection of the strong traction at 3nm as well as high utilization at 4/5nm – both of which are being driven by ongoing orders from AI GPU and HPC customers and premium smartphone platforms,” Li told CNBC in a statement.