$Taiwan Semiconductor(TSM.US) First take: The company's revenue and gross margin this quarter were better than market expectations. Especially the gross margin has returned to around 58%, far exceeding market expectations (54.8%). This is mainly due to the boost from Apple's new products and AI demand, with the company's 3nm production continuing to increase, driving up the average product price and gross margin.

Even more surprising is that the company's guidance for next quarter's revenue and gross margin significantly exceeded market expectations. The company expects Q4 2024 revenue to be $26.1-26.9 billion (market expectation: $24.9 billion) and gross margin of 57-59% (market expectation: 54.7%). Dolphin Research believes the company's core metrics have improved significantly, mainly due to increased shipments to customers like Apple and Nvidia.

Overall, although ASML's recent earnings report was disappointing, Taiwan Semiconductor Manufacturing Company still delivered strong results. In the AI industry chain, TSMC remains crucial and continues to benefit, while its impact on lithography equipment suppliers like ASML is relatively limited at this stage.