STORY: TSMC raised its annual revenue forecast on Thursday (April 16).
The tech giant further said it's stepping up capital spending this year.
That as the world's biggest contract manufacturer of advanced AI chips tries to meet massive demand for its products.
The bullish outlook comes after the company - which is a major Nvidia supplier - said first-quarter profit leapt 58% to a record $18.2 billion.
That was well ahead of expectations and marked its eighth straight quarter of double-digit growth.
CEO C.C. Wei said TSMC was being prudent in planning due to uncertainty caused by the Middle East conflict.
He also said AI-related demand was still "extremely robust".
His remarks were likely to ease investor worries about the impact of the war.
He added full-year revenue in U.S. dollar terms would grow more than 30% - that's up from a previous forecast of close to 30%.
While capital expenditure would be at the high end of its earlier guidance of $52 billion to $56 billion.
Looking ahead, TSMC forecast sales between $39 billion and just over $40 billion for the current quarter.
That's well up from the same period last year and a jump from close to $36 billion in the first quarter.
The huge demand for high-performance chips needed for AI has driven Asia's most valuable company to new heights.
TSMC's shares have gained more than a third so far this year.
