TSMC October growth weakest since February amid AI chip crunch

Taiwan Semiconductor Manufacturing Co. reported a 16.9% increase in October revenue from a year earlier, the weakest monthly growth since February 2024. The update came as Nvidia Chief Executive Jensen Huang visited Taiwan and met TSMC Chief Executive C.C. Wei to request additional production amid tight capacity.

The monthly figure points to a cooler pace at the world’s largest contract chipmaker. On average, analysts project TSMC’s sales to climb about 16% in the current quarter. The stock has advanced roughly 37% since the start of the year.

Major chip designers are competing for manufacturing slots for advanced processors. TSMC builds Nvidia’s AI accelerators and also produces chips for Advanced Micro Devices, Qualcomm and Apple. In October, Wei told analysts capacity remained very tight and that efforts are underway to reduce the gap between demand and supply.

Large technology groups plan heavy spending on data centers and AI infrastructure next year, with company plans pointing to more than $400 billion in outlays. 

Over the weekend, Huang described Nvidia’s business as “growing month by month, stronger and stronger.” Qualcomm chief Cristiano Amon argued the world is underestimating how large AI will become.

Last week’s drop in Asia’s technology shares put attention on the year’s rally in AI and semiconductor names. Several finance leaders have warned about the risk of a market pullback. Scion Asset Management disclosed bearish positions on Nvidia.

TSMC’s October update offers an early read on year-end demand as chipmakers and their customers align output with data-center and device rollouts. As GNCrypto covered previously, TSMC lifted its 2025 revenue growth outlook to nearly 35% after third-quarter net income rose 39% to $14.8 billion, driven by demand for AI chips.