According to the Wise Finance APP, semiconductor stocks surged in the afternoon, as of the time of publication, HG SEMI (06908) rose by 15.49% to HKD 0.82; SOLOMON SYSTECH (02878) rose by 12% to HKD 0.56; SMIC (00981) rose by 11.35% to HKD 28.95; Hua Hong Semiconductor (01347) rose by 9.67% to HKD 23.25; and Shanghai Fudan (01385) rose by 8.46% to HKD 16.66.
On the news front, Taiwan Semiconductor's third-quarter performance exceeded market expectations, with third-quarter revenue of approximately NTD 759.69 billion, a year-on-year increase of 39.0% and a quarter-on-quarter increase of 12.8%; post-tax net profit was approximately NTD 325.26 billion, surpassing the market estimate of NTD 299.3 billion, a year-on-year increase of 54.2% and a quarter-on-quarter increase of 31.2%. Analysts pointed out that after surpassing expectations in quarterly performance, Taiwan Semiconductor raised its revenue growth target for 2024, alleviating market concerns about the sustainability of global chip demand and AI hardware prosperity, indicating to investors that its demand for chips remains strong.
In addition, the recent &#34;basket of incremental policies&#34; have been successively released. TF Securities believes that the &#34;series of incremental policies&#34; may boost demand for terminal electronic consumer goods, driving the industry chain beyond expectations. Reviewing the history of semiconductors, the initiation of a major cycle often accompanies unpredictable significant events. The bank believes that if the domestic incremental policies effectively stimulate consumer end demand, it is expected to raise industry-wide expectations for semiconductor demand, becoming one of the driving forces for the upward trend in this cycle, and is optimistic about the performance of domestic semiconductor demand after the incremental policies

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Semiconductor stocks rebounded strongly in the afternoon, with HG SEMI up 15.49%, SOLOMON SYSTECH up 12%, and SMIC up 11.35%. Taiwan Semiconductor's third-quarter performance exceeded expectations, with revenue of RMB 759.69 billion, a year-on-year increase of 39%, and net profit of RMB 325.26 billion, a year-on-year increase of 54.2%. Analysts believe that Taiwan Semiconductor has raised its revenue target for 2024, easing market concerns about chip demand. Incremental policies are expected to boost demand for electronic consumer goods, driving the industry chain to grow beyond expectations

- Semiconductor stocks strengthened in the afternoon, with notable gains from companies like Hongguang Semiconductor and SMIC.  
- TSMC's third-quarter earnings exceeded market expectations, with revenue of approximately NT$ 759.69 billion, a year-on-year increase of 39.0%.  
- Analysts believe that TSMC's performance alleviates concerns about global chip demand, while recent policies may boost consumer electronics demand, positively impacting the semiconductor industry.

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Market Insight | Semiconductor stocks rise in the afternoon, with Taiwan Semiconductor's performance boosting market confidence. Incremental policies are expected to drive the industry chain beyond expectations