$TSM’s gross margin fell. Its free cash flow jumped. That’s the part of today’s results worth paying attention to. TSMC reported: - $46.72B in Q3 revenue, above its previous guidance - 66.4% gross margin, down from 67.7% in Q2 - NT$476.56B in free cash flow, up from NT$287.36B The initial 2nm ramp is weighing on margins, but it hasn’t stopped TSMC from generating more cash after capex. Now comes the real test: can it scale 2nm without letting those ramp costs eat into the economics? Q4 revenue guidance is $52.3B – $54.3B, with gross margin guided at 65 – 67%. One quarter of margin compression doesn't automatically mean the AI demand story is weakening. But sustained cash generation as 2nm scales matters more than the headline revenue number. Would you be concerned about the margin dip, or does the cash flow change your view?