TSMC bullish on outlook as AI boom blows Q3 profit past forecasts

TAIPEI, Oct 17 (Reuters) - TSMC, the world's largest contract chipmaker, bet on sustaining its strong growth, after reporting on Thursday a forecast-beating 54% jump in quarterly profit driven by soaring demand for chips used in artificial intelligence (AI).

Taiwan Semiconductor Manufacturing Co (2330.TW), the dominant producer of advanced chips used in AI applications whose customers include Apple (AAPL.O) and Nvidia (NVDA.O), has benefited from a surge towards AI across a spectrum of industries.

TSMC estimated its capital spending in the current quarter would more than double to around $11.5 billion and that the budget was likely to increase further next year, as it expects healthy demand for its products.

It said 2024 full-year revenue will grow close to 30% in U.S. dollar terms, compared to a previous guidance of slightly above the mid-20% range.