TSMC's Growth Slows Amid AI Boom Concerns

2025-11-11 companies

Hsinchu, Monday, 10 November 2025.
TSMC reports its slowest revenue growth in 18 months, raising doubts about the sustainability of the AI-driven market surge, despite ongoing investments from major tech firms.

TSMC’s Latest Revenue Figures

Taiwan Semiconductor Manufacturing Company (TSMC), trading under the ticker symbol TSM, has reported its slowest revenue growth in 18 months. In October 2025, TSMC’s sales increased by 16.9%, reaching NT$367.47 billion. This marks a significant slowdown compared to previous months and is the slowest pace since February 2024 [1][2][3].

Impact of the AI Boom

The deceleration in TSMC’s growth raises concerns about the sustainability of the current artificial intelligence (AI) boom. Despite substantial investments from tech giants like Nvidia, Meta Platforms, Alphabet, Amazon, and Microsoft, which plan to collectively spend over $400 billion on AI infrastructure next year, the market’s enthusiasm appears to be moderating [2][3][4].

Market Reactions and Investor Confidence

TSMC’s American depositary receipts showed a pre-market increase of up to 3%, indicating some level of investor confidence. The company’s strong market position and strategic focus on advanced technologies, including AI, continue to support its financial performance, although analysts remain cautious about a potential cooling market [2][5][6].

Broader Implications for the Semiconductor Industry

The slowdown in TSMC’s growth could have broader implications for the semiconductor industry and tech sector. With TSMC being a major supplier to companies like Nvidia, Advanced Micro Devices, Qualcomm, and Apple, any shift in its growth trajectory might reverberate across the industry. However, TSMC’s strategic initiatives and ongoing demand for advanced chips suggest that the company is well-positioned to navigate these challenges [3][4][7].

Sources

AI growth TSMC