Taiwan Semiconductor Manufacturing Co. (TSMC) reported its slowest monthly revenue growth in over a year, fueling concerns that the artificial intelligence (AI) stock rally may not be fully supported by the industry's business fundamentals. TSMC, the primary chip supplier to AI leader Nvidia Corp. , saw a 16. 9% increase in sales for October, marking the slowest growth since February 2024. However, this figure aligns with the average analyst forecast of a 16% sales rise for the current quarter. The company has also faced challenges from a strengthening local currency, which may have impacted its reported revenue. Shares remained largely flat in Taipei on Tuesday. Industry leaders continue to stay optimistic about AI-driven expansion as major technology firms ramp up investments in data centers. Since TSMC’s revenue gain reflects just one month, it offers limited insight for investors. According to Bloomberg Intelligence analyst Charles Shum, TSMC’s seemingly modest 17% year-over-year October sales growth in local currency does not suggest weakening AI chip demand. The figure is influenced by first-half order pull-ins and a weaker U. S.

dollar. In U. S. dollar terms, October revenue rose 22. 6%—to $12 billion from $9. 8 billion—which is consistent with the midpoint of TSMC’s fourth-quarter guidance. Despite these reassuring signs, the market remains uneasy. Investors were shaken last week by a sharp decline in Asian technology stocks, raising fears that the exceptional rally in AI and semiconductor shares might be losing momentum. Wall Street leaders have cautioned that a market correction could be overdue, while Michael Burry’s Scion Asset Management revealed bearish positions on Nvidia. This skepticism persists despite substantial spending plans from leading AI companies. Meta Platforms Inc. , Alphabet Inc. , Amazon. com Inc. , and Microsoft Corp. intend to collectively invest over $400 billion in AI infrastructure next year—a 21% increase over 2025 budgets—to maintain their leadership in emerging technologies. Nvidia CEO Jensen Huang, whose company serves as a key AI chip provider to major corporations, stated on Saturday that their business is “growing month by month, stronger and stronger. ” During a two-day visit to Taiwan, Huang met with TSMC CEO C. C. Wei and requested increased chip supplies. All major chip designers are competing to secure more production from the Hsinchu-based manufacturer, which is currently operating with constrained capacity.