Taiwan Semiconductor Manufacturing Co. (TSM) has reported a 77% increase in its second-quarter profit, fueled by the ongoing artificial intelligence (A.I.) boom.

The world’s largest contract semiconductor manufacturer reported second-quarter revenue of 1.27 trillion new Taiwan dollars ($39.45 billion U.S.), which was ahead of the NT$1.264 trillion expected on Wall Street. Sales were up 36% from a year earlier.

TSMC, as the company is known, posted net income of NT$706.56 billion, which was far ahead of the NT$632.64 billion consensus expectation of analysts.

Net income came in at a record high for a fifth consecutive quarter.

Management said that the global A.I. boom is driving demand for the microchips and semiconductors that the company makes. TSMC manufactures 75% of the world’s chips.

The company forecast revenue for the current third quarter of $44.6 billion U.S. to $45.8 billion U.S., with operating profit margins of 56% to 58%.

“AI related demand continues to be extremely robust,” said TSMC Chairman C.C. Wei.

The company also announced plans to invest an additional $100 billion U.S. in Arizona to meet customer demand, bringing its total investment in the U.S. state to $265 billion U.S.

Lastly, TSMC raised its capital expenditure budget for this year to between $60 billion U.S. and $64 billion U.S. as it invests to support operational growth.

TSM stock has risen 77% in the last 12 months to trade at $419.48 U.S. per share in New York.

Taiwan Semiconductor is Asia’s most valuable publicly traded company with a market capitalization of $1.95 trillion U.S.

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