on November 16th
Morgan Stanley is optimistic about TSMC's future performance and gives it a bullish rating
Morgan Stanley recently stated that after participating in a forum organized by TSMC, Morgan Stanley identified many operational highlights of TSMC and therefore gave it a "better than the market" rating.
TSMC stated on the forum that the demand for many artificial intelligence customers is still strong. Therefore, in order to meet the demand, it plans to more than double the CoWoS packaging capacity by 2024, which will help with future development. The company has not provided any relevant comments on whether it can promote the AI PC replacement trend and further drive TSMC's revenue in the face of the development of peripheral AI.
Although TSMC's revenue reached a historic high in October, its forecast for Q4 2023 remains unchanged, resulting in an annual decrease of 9% in revenue denominated in US dollars for 2023. It is expected that TSMC's operations will be healthier after Q4 2023, with growth expected in 2024
In terms of gross profit margin, TSMC stated that the N3 process requires at least 7-8 quarters to achieve its gross profit margin target, driving the company's overall gross profit margin to reach 53% or above. TSMC believes that 3nm is an important node and the demand is expected to continue for several years, making it of strategic significance.