TSMC sees slowest growth in 18 months as AI boom faces scrutiny
Taiwan Semiconductor Manufacturing Co. (TSMC) has reported its slowest growth in 18 months, with monthly revenue rising by 16.9% in October — a pace that marks the company’s weakest performance since February 2024.
The report has sparked renewed discussions among investors about the long-term viability of the artificial intelligence (AI) boom, which has been driving stock prices for major companies like Nvidia Corp. this year, News.Az reports, citing foreign media.
Industry executives remain buoyant about AI-driven growth as major tech firms are accelerating investments in data centers. The TSMC revenue gain covers just a single month of business, offering investors less insight.
Investors were jolted last week by a sudden slump in Asia’s technology shares, which raised concerns that the world-beating rally in artificial intelligence and semiconductor stocks may be faltering. Wall Street chief executives have warned of an overdue market correction, and Michael Burry’s Scion Asset Management disclosed bearish wagers on Nvidia.
That’s in spite of massive 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.
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