The AI chip leader's stock trades around 9% under its record, even after its chipmaker boosted its forecast again.
The AI chip leader's stock trades around 9% under its record, even after its chipmaker boosted its forecast again.
Nvidia (NVDA -1.43%) investors got a new look at the demand for artificial intelligence (AI) chips on Thursday, Oct. 15. Taiwan Semiconductor Manufacturing (TSM -2.28%), which makes chip wafers for Nvidia, posted third-quarter revenue of $46.7 billion -- over the high end of the $44.6 billion to $45.8 billion range management had forecast in July.
And TSMC's chairman and CEO, C.C. Wei, didn't sound worried about what's next.
"[T]he demand actually is still far above our capability today to supply," Wei said on the company's earnings call. He made the comment in an answer where he wouldn't say if that demand comes more from AI accelerators or central processing units (CPUs).
Nvidia stock, though, headed the other way. Shares ended Thursday at $217.23, off around 9% from the record close they set on Oct. 6 ($239.24).
I think the gap between what Nvidia's supplier is reporting and what Nvidia's stock is doing makes the shares worth buying now.
TSMC's biggest platform keeps accelerating
Showing how much AI is powering the chipmaker, TSMC's revenue from high-performance computing (the platform that includes AI chips) climbed 22% sequentially in the third quarter. That was faster than the platform's 20% sequential growth in the second quarter. High-performance computing is now 68% of TSMC's revenue, up from 57% in the third quarter of 2025. Overall, TSMC's revenue grew 41% year over year in U.S. dollars. Net income, which TSMC reports in New Taiwan dollars, rose 69%.
Management expects more. TSMC guided for fourth-quarter revenue of $52.3 billion to $54.3 billion. The midpoint is around 14% over the third quarter's total, so the company is calling for another double-digit sequential gain after a 16% climb in the third quarter.
TSMC now sees 2026 revenue growing about 44% in U.S. dollars, up from its July outlook of a little over 40%.
Averytin News Financial update.