Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC for short, rose after the semiconductor contract manufacturer once again produced strong revenue growth and issued upbeat guidance as it continues to be an artificial intelligence (AI) beneficiary.

Despite the comment above, TSMC still issued much better guidance than expected for the first quarter. It forecasts revenue of $25 billion to $25.8 billion, which would be a sequential decline, but was well ahead of analysts' consensus estimate of $23.9 billion. It also expects operating margin to remain strong, in the 46.5% to 48.5% range.