SINOLINK SECURITIES·2025-10-19 11:29Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies [2]. Core Insights - The demand for AI-related technologies has strengthened significantly over the past three months, with TSMC's management highlighting AI as the strongest demand driver [12][15]. - TSMC's Q3 performance exceeded expectations, with revenue of $33.1 billion, a year-on-year increase of 40.81% and a quarter-on-quarter increase of 9.29% [12]. - Google announced a $15 billion investment in an AI data center in Andhra Pradesh, India, marking its largest investment in the country to date [21]. Summary by Sections AI Application Activity - The activity of overseas AI chat applications has seen a significant increase, with Claude showing a notable rise and Gemini beginning to recover [9][11]. - Domestic applications in China have also rebounded following the National Day holiday [11]. TSMC Performance - TSMC's Q3 revenue was $33.1 billion, with a gross margin of 59.5%, driven by cost reductions and improved utilization rates [12][15]. - The company expects Q4 revenue to be between $32.2 billion and $33.4 billion, with a gross margin of 59% to 61% [12]. Data Center Expansion - Google is investing $15 billion in a new AI data center in India, with an initial capacity of 1GW [21]. - The report suggests that the expansion of data centers in North America is not keeping pace with the growth of computing resources, leading to a potential geographical redistribution of computing power [23].