Guangda Securities: TSMC's Q3 gross margin and Q4 guidance significantly exceed expectations, AI demand shows positive stance

Guangda Securities released a research report stating that Taiwan Semiconductor's 24Q3 performance and 24Q4 guidance greatly exceeded expectations, with strong profitability. The company has shown a positive attitude towards AI demand, with AI becoming an important driver of performance. High production capacity utilization and cost optimization have helped boost gross profit margin levels. The company continues to benefit from the trend of process migration to more advanced nodes, with overseas wafer fabs gradually starting production. Guangda Securities believes the following factors will support the company's sustained rapid revenue growth and high profitability: 1) The company continues to benefit from advanced process migration, with stronger demand for 2nm compared to 3nm, and it is expected that 2nm design capacity will exceed 3nm in the future; 2) Revenue growth from advanced packaging has exceeded the company's average level in the past five years, and its gross profit margin is approaching the company's average level, becoming a new growth business; 3) The company essentially enjoys the dividend of AI chip manufacturing, improving the competitive landscape in the AI era