Archive · 10 Nov 2025
TSMC's Slowing Sales Raise Questions About AI Boom Sustainability Amid High Demand
Imagine a popular toy company that makes super special computer chips for all the big AI companies.
Recently, this company, called TSMC, said its sales growth slowed down a little bit last month.
This made some people wonder if everyone will keep wanting these AI chips so much, or if the excitement might cool down.
However, the heads of big AI companies like Nvidia, Google, and Meta say they are still ordering lots more chips because AI is becoming very important.
They plan to spend a huge amount of money next year to build more AI technology.
Nvidia's boss even said his company is getting stronger every month.
TSMC's bosses agree that they are busy making as many chips as they can because everyone wants them, and they can't make them fast enough right now.
So, even with a small dip in sales growth, many believe the demand for AI chips is still very strong.
TSMC reported a 16.9% rise in October sales, the slowest growth rate since February 2024, sparking debate on AI boom sustainability.
Despite slowing growth, major tech companies like Meta, Alphabet, Amazon, and Microsoft plan to increase AI buildout spending by 21% to over $400 billion next year.
Nvidia CEO Jensen Huang expressed optimism, stating his company's business is growing 'month by month, stronger and stronger' and met with TSMC to request more chip supplies.
TSMC CEO C.C. Wei confirmed that the company's manufacturing capacity is tight and they are working to meet demand for advanced chips.
Some investors and analysts are cautious due to a recent slump in tech shares and bearish wagers on semiconductor stocks, while industry executives remain buoyant on AI-driven growth.
- Who
- Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia Corp., Meta Platforms Inc., Alphabet Inc., Amazon.com Inc., Microsoft Corp., Qualcomm Inc., Advanced Micro Devices Inc., Apple Inc.
- What
- TSMC reported slowing monthly sales growth, prompting debate on the sustainability of the AI boom despite continued high demand from major tech companies for chip orders.
- When
- October 2025 (sales data reported), Published November 10, 2025
- Where
- Taiwan
- Why
- To report financial results and discuss the future outlook of the AI chip market amidst investor concerns and strong industry demand.
Market Skeptics
Industry Executives
Sustainability of AI Boom
Market Skeptics
Slowing monthly revenue growth at TSMC and a slump in tech shares suggest the AI rally may be nearing a short-term peak, with some investors making bearish wagers.
Industry Executives
Despite a single month of slower growth, industry executives remain buoyant, citing massive spending plans by tech giants and a continuous month-over-month increase in Nvidia's business.
- TSMC October Sales Growth
- 16.9% (slowest pace since February 2024)
- Analysts' Q4 Sales Growth Expectation
- 16%
- TSMC Share Performance (Year-to-Date)
- +37%
- Projected AI Buildout Spending by Meta, Alphabet, Amazon, Microsoft (Next Year)
- >$400 billion (+21% from 2025)
- Nvidia CEO's Outlook
- Business growing 'month by month, stronger and stronger'
- TSMC's Capacity Status
- Very tight