1017 GMT - TSMC's gross margin outlook remains resilient, Citi analysts say in a research note. With 2Q gross margin reaching 67.7%, advanced technologies already accounting for 77% of wafer revenue, and 2-nanometer chips contributing revenue for the first time, TSMC remains well-positioned to sustain industry-leading profitability, the analysts say. TSMC's pricing discipline also preserves long-term customer relationships, they add. More importantly, management repeatedly emphasized that artificial-intelligence demand has become even stronger than previously expected and it sees increasing AI demand with agentic AI adding CPU demand on top of accelerators. Citi maintains its buy rating on TSMC and keeps its target price at 3,800 New Taiwan dollars. Shares last ended at NT$2,290. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 17, 2026 06:17 ET (10:17 GMT)

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