Taiwan Semiconductor Manufacturing Co. projected revenue ahead of estimates and predicted the worst could soon be over for the chip industry, bolstering a growing view that tech demand could recover from its post-Covid funk going into 2024.

The primary chipmaker to Nvidia Corp. and Apple Inc. projected sales of $18.8 billion to $19.6 billion this quarter and capital spending of $32 billion for 2023, both ahead of analysts’ expectations. While capex figure marked the lower end of a previous range, it surpassed the $30.5 billion estimated.