TSMC Reports Strong AI Chip Demand Outpacing Supply
Taiwan Semiconductor Manufacturing (TSM) reported third-quarter revenue of $46.7 billion on October 15, exceeding its forecast range and highlighting strong demand for high-performance computing chips used in artificial intelligence applications. TSM's CEO C.C. Wei noted that AI chip demand remains significantly higher than current production capacity but did not specify whether the surge is driven more by accelerators or CPUs. Despite this positive outlook from a key supplier, Nvidia (NVDA) shares fell nearly 9% to $217.23 on October 15 after hitting record highs earlier in the month. Analysts suggest that the gap between TSMC's strong performance and Nvidia’s stock price presents an attractive buying opportunity. TSMC expects continued growth, forecasting fourth-quarter revenue of up to $54.3 billion with high-performance computing now accounting for 68% of its total revenue.