(Bloomberg) — Taiwan Semiconductor Manufacturing Co. reported slowing growth in monthly revenue, highlighting uncertainty over the sustainability of the AI boom even as industry behemoths including Nvidia Corp. chase more chip supplies.
The company posted a 16.9% rise in sales for October, the slowest pace since February 2024. Analysts on average are expecting sales to increase 16% in the current quarter. TSMC’s American depository receipts were up as much as 3% in pre-market trading.
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Industry executives remain buoyant about AI-driven growth as major tech firms are accelerating investments in data centers. The TSMC revenue gain also just covers just a single month of business, offering investors less insight.
Still, the market is on edge.
Investors were jolted last week by a sudden slump in Asia’s technology shares, which served as a stark reminder that the world-beating rally in artificial intelligence and semiconductor stocks may be nearing a short-term crest. Wall Street chief executives have warned of an overdue market correction, with Michael Burry’s Scion Asset Management also disclosing bearish wagers on Nvidia.
That’s despite massive ample spending plans from leading AI players.
Meta Platforms Inc., Alphabet Inc., Amazon.com Inc. and Microsoft Corp. will collectively spend more than $400 billion to fund an AI buildout next year, a 21% hike from 2025, to secure leadership in the race in emerging technologies.
Chief Executive Officer Jensen Huang of Nvidia, which is the primary AI chip supplier to major companies, said on Saturday his business is “growing month by month, stronger and stronger.”
Huang met TSMC Chief Executive Officer C.C. Wei and asked for more chip supplies during his two-day whirlwind trip to Taiwan this time when major chip designers are all chasing limited supplies from the Hsinchu-based company.
TSMC is also the go-to chipmaker for the Santa Clara, California-based firm’s competitors including Advanced Micro Devices Inc. and Qualcomm Inc., and it makes Apple Inc.’s silicon for iPhones and other gadgets.
Huang’s optimism is shared by his rivals. Qualcomm Chief Executive Officer Cristiano Amon told Bloomberg TV last week that the world is underestimating how big AI will get.
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