Quick Read
- Taiwan Semiconductor (TSM) reported 16.9% year-over-year revenue growth in October and 33.8% growth for January through October.
- NVIDIA CEO Jensen Huang requested more chip supplies from Taiwan Semiconductor during a recent Taiwan visit.
- Taiwan Semiconductor’s October revenue met analyst estimates and the company faces more demand than available supply.
- Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better; learn more here.
In-the-know traders see Taiwan Semiconductor Manufacturing (NYSE:TSM) as global powerhouse among chipmakers. Yet, even a standard bearer like Taiwan Semiconductor can be a target of skepticism from time to time.
Some of investors’ concerns about Taiwan Semiconductor may be related to worries about an artificial intelligence (AI) bubble. Certainly, Taiwan Semiconductor is a beneficiary of the AI technology field’s rapid expansion during the past several years.
But then, what if Taiwan Semiconductor’s ability to sell its AI-ready chips showed signs of slowing down? Would this be a sign that the AI bubble is about to burst and that Taiwan Semiconductor is in major trouble? That’s the billion-dollar question today, so let’s calm down and consider whether TSM stock is actually on the brink of collapse in November 2025.
Taiwan Semiconductor’s Sales Growth Slump
Bloomberg’s November 10 report on Taiwan Semiconductor sounded grim, with the headline declaring that the chipmaker posted the “Slowest Growth in 18 Months Amid AI Bubble Debate.” Does this headline tell the full story, though?
To be a truly informed investor, the key is to dig deeper than the headlines and investigate the data. With that in mind, we can take a peek into Taiwan Semiconductor’s revenue report for October 2025.
As it turns out, the company’s NT$367.473 billion in monthly revenue represents an 11% decline when compared to NT$330.98 in September. On the other hand, Taiwan Semiconductor’s October revenue showed a 16.9% increase on a year-over-year basis.
Still, the Bloomberg report pointed out that this year-on-year monthly revenue growth was the “slowest pace since February 2024” for Taiwan Semiconductor. Moreover, Bloomberg observed investors debating the “sustainability of an AI boom that has propelled the stocks of” Taiwan Semiconductor customers NVIDIA (NASDAQ:NVDA).
Market Takes Bad News in Stride
Despite Bloomberg’s worrisome-sounding headline, the market evidently took the news in stride as TSM stock headed 2% to 3% higher on November 10. Yet, shouldn’t investors be heading for the exits as Taiwan Semiconductor’s revenue growth slows down?
Again, we can only see the full picture if we move past the headline. As Bloomberg acknowledges, Taiwan Semiconductor’s October revenue growth pace is “on track with the average analyst estimate of a 16% sales increase in the current quarter.”
There’s also a bigger-picture statistic worth considering. Specifically, Taiwan Semiconductor’s revenue for January through October 2025 totaled NT$3,130.44 billion; this represents a 33.8% increase over the same period in 2024.
Besides, Taiwan Semiconductor’s 16.9% year-over-year October sales growth isn’t terrible unless you’re expecting massive increases every month, which is unrealistic. Even for a behemoth like Taiwan Semiconductor, the pace of sales growth will ebb and flow; this is quite normal and ought to be expected.
NVIDIA and Qualcomm Are Optimistic
In addition, if TSM stock were in danger of an imminent catastrophe, you probably wouldn’t hear positive industry reports from a chip leader like NVIDIA. As Bloomberg mentioned, NVIDIA CEO Jensen Huang stated on Saturday that his business is “growing month by month, stronger and stronger.”
This isn’t just chatter from Huang as he recently met Taiwan Semiconductor CEO C.C. Wei and “asked for more chip supplies during his two-day whirlwind trip to Taiwan,” per Bloomberg. Hence, it doesn’t appear that Taiwan Semiconductor stock is at risk of a steep decline tomorrow or next week.
Plus, NVIDIA isn’t the only tech-hardware firm to express confidence. Reportedly, Qualcomm (NASDAQ:QCOM) CEO Cristiano Amon “told Bloomberg TV last week that the world is underestimating how big AI will get.”
Meanwhile, Wei disclosed that Taiwan Semiconductor is “working hard to narrow the gap between demand and supplies.” Having more demand than available supply isn’t the worst problem that a chipmaker could have, you must admit.
Not Such Bad News, After All
In the end, a headline can spin the facts with a positive, negative, or neutral slant. It’s up to you to pick out the relevant data and form your own conclusions.
Currently, there’s nothing in the available data to suggest that Taiwan Semiconductor is in any real trouble. The bigger picture indicates that Taiwan Semiconductor is still selling plenty of chips and industry leaders remain confident.
All in all, the market had the right reaction when it bid up the TSM stock price. With or without an AI bubble, the world will continue to demand Taiwan Semiconductor’s chips for the foreseeable future. That’s why a headline or two needn’t deter you from taking a long position in Taiwan Semiconductor stock.
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