TSMC Posts Slowest Growth in 18 Months Amid AI Bubble Debate

Core Viewpoint - Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 16.9% increase in sales for October, marking the slowest growth since February 2024, raising concerns about the sustainability of the AI boom that has benefited companies like Nvidia [1][3] Group 1: TSMC's Performance - TSMC's October sales growth of 16.9% aligns with the average analyst estimate of a 16% increase for the current quarter [1] - The revenue gain reported by TSMC reflects only a single month of business, providing limited insight for investors [2] Group 2: Market Sentiment and AI Growth - Industry executives remain optimistic about AI-driven growth, with major tech firms increasing investments in data centers [2] - Concerns have emerged regarding a potential market correction, as indicated by a recent slump in Asia's technology shares [3] - Despite the uncertainty, leading AI companies plan to collectively invest over $400 billion in AI development next year, a 21% increase from 2025 [4] Group 3: Chip Supply Dynamics - Nvidia's CEO Jensen Huang expressed confidence in the company's growth and requested increased chip supplies from TSMC during his visit to Taiwan [5] - TSMC is a key supplier for major chip designers, including Nvidia, Advanced Micro Devices, and Qualcomm, which are all seeking to maximize production capacity [5][6] - Qualcomm's CEO also emphasized that the potential of AI is being underestimated globally [6]