Morgan Stanley's analysts maintained their Overweight rating on Taiwan Semiconductor Manufacturing (NYSE:TSM) ahead of its Q3/23 earnings announcement, scheduled on October 19.

While some investors express concerns regarding the broader economic landscape and potential extended semiconductor downturn, Morgan Stanley anticipates the company's Q4/23 revenue guidance might exceed expectations. This optimism stems from strong demand for AI semiconductors and urgent orders from Android smartphone and PC CPU brands like MediaTek and AMD. The analysts predict a 10% quarter-over-quarter growth in Q4/23 revenue and anticipate a gross margin surpassing 53%.