TAIPEI: Taiwan Semiconductor Manufacturing Co or TSMC has posted its slowest monthly revenue growth in more than a year, lending credence to concerns that the artificial intelligence (AI) stock rally isn’t justified by the industry’s business prospects.
TSMC, the main chipmaker to AI leader Nvidia Corp, posted a 16.9% rise in sales for October, the slowest pace since February 2024.
Still, that tracks with the average analyst estimate for a 16% sales increase in the current quarter.
The company has also been grappling with a strengthening local currency that may have affected TSMC’s reported revenue.
Its shares stood largely unchanged in Taipei yesterday.
Industry executives remain buoyant about AI-driven growth as major tech firms are accelerating investments in data centres.
The TSMC revenue gain covers just a single month of business, offering investors less insight. — Bloomberg
