TSMC Says AI Chip Demand Is Still Far Above What It Can Supply. That's Why I'd Buy Nvidia Stock.
Key PointsTSMC now expects its 2026 revenue to rise around 44% in U.S. dollars, up from a bit above 40% in July.
Taiwan Semiconductor Manufacturing (TSMC) reported $46.7 billion in third-quarter revenue, surpassing the predicted $44.6 billion to $45.8 billion range. TSMC's chairman and CEO, C.C. Wei, expressed confidence in the demand for AI chips, stating that the demand "is still far above our capability today to supply." This statement contrasted with Nvidia's stock, which dropped 9% from its Oct.
6 record close of $239.24, hitting $217.23. The gap between TSMC's reported AI chip demand and Nvidia's stock performance may indicate an opportunity to buy Nvidia stock. TSMC's high-performance computing revenue grew 22% sequentially in the third quarter, making up 68% of its total revenue. Management expects TSMC's revenue to grow 44% in 2026, and AI accelerator revenue to increase at a high-50% average yearly rate from 2024 to 2029.
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