Citigroup: TSMC's gross profit margin prospects remain strong

In a research report, Citigroup analysts stated that TSMC's gross margin prospects remain strong. The analysts mentioned that in the second quarter, the gross margin reached 67.7%, with advanced processes accounting for 77% of wafer revenue and 2-nanometer chips contributing to revenue for the first time, TSMC remains in a favorable position to maintain industry-leading profitability. They added that TSMC's pricing discipline has also helped maintain long-term customer relationships. More importantly, management has repeatedly emphasized that the demand for artificial intelligence has become stronger than previously expected, and with the increasing demand for CPUs outside of accelerators for AI, the company sees continuous growth in AI demand.