TSMC’s October Revenue Growth Slows, Raising AI Chip Demand Concerns as Nvidia Pushes Supply

• TSMC’s October revenue growth of 16.9% signals potential slowdown in AI chip demand, impacting key clients like Nvidia.

• Nvidia CEO Jensen Huang urged TSMC to boost Taiwan-based chip production during a recent visit, highlighting ongoing supply constraints.

• U.S.-China tensions limit Nvidia’s sales in China, pushing Beijing toward domestic AI chip alternatives like those from Huawei, with potential ripple effects on global semiconductor markets including crypto mining hardware.

Explore TSMC’s October 2025 revenue surge of 16.9% and Nvidia’s push for more chips amid AI boom. Discover U.S.-China tensions’ impact on semiconductors vital for crypto and AI. Stay informed—read now for expert insights.

What is TSMC’s October 2025 Revenue Growth and Its Implications for AI and Crypto?

TSMC’s October 2025 revenue growth reached 16.9%, the slowest monthly increase since February 2024, raising questions about the pace of AI chip demand. While this figure underscores challenges in balancing supply with explosive growth in artificial intelligence applications, the company maintains robust projections. For the crypto sector, which relies heavily on advanced semiconductors for mining and blockchain operations, this growth signals continued stability in chip availability despite geopolitical hurdles.

How Is Nvidia Influencing TSMC’s Production Strategy?

Nvidia CEO Jensen Huang recently visited Taiwan and met with TSMC’s leadership, including Chairman C.C. Wei, to request expanded chip production capacity. Huang emphasized Nvidia’s accelerating demand, stating the company is “growing month by month, stronger and stronger.” This push comes as TSMC grapples with tight capacity at its Hsinchu facilities, where major players like AMD, Qualcomm, and Apple also secure manufacturing slots. According to analysts from financial institutions, TSMC’s efforts to scale production are critical, with global AI investments projected to exceed $400 billion by 2026 from tech giants such as Meta, Amazon, Microsoft, and Alphabet—a 21% rise from current levels. In the crypto space, Nvidia’s GPUs remain essential for high-performance computing in mining rigs, and any production boosts could alleviate shortages affecting blockchain networks. Qualcomm CEO Cristiano Amon echoed this optimism in an interview with Bloomberg TV, noting that the scale of AI’s expansion is often underestimated, a sentiment that extends to its intersections with decentralized technologies.

Frequently Asked Questions

What Factors Are Driving TSMC’s Revenue Growth in October 2025?

TSMC’s 16.9% revenue increase in October 2025 stems primarily from sustained demand for advanced chips used in AI, smartphones, and high-performance computing. Despite being the weakest monthly gain since February 2024, this growth reflects ongoing expansions in semiconductor fabrication, with contributions from clients like Nvidia and Apple. Analysts project 27.4% growth for the quarter, supported by year-to-date stock gains of 37%, indicating market resilience.

How Do U.S.-China Tensions Affect Nvidia’s Chip Supply and Crypto Markets?

U.S. export restrictions have blocked Nvidia from selling advanced chips like the Blackwell series to China, prompting Beijing to favor domestic alternatives from firms such as Huawei and Cambricon. Nvidia CEO Jensen Huang has highlighted that these policies could accelerate China’s independent AI chip development, potentially benefiting U.S. competitors less in the long term. For crypto markets, this tension disrupts global supply chains for GPUs used in mining, leading to higher costs and innovation in energy-efficient alternatives to support blockchain scalability.

Key Takeaways

• TSMC’s Modest Growth: The 16.9% October revenue rise indicates a cooling in AI chip demand pace, yet quarterly forecasts remain strong at 27.4%, bolstering confidence in semiconductor fundamentals essential for crypto hardware.
• Nvidia’s Supply Push: Jensen Huang’s request for more TSMC capacity underscores persistent shortages, with implications for AI infrastructure and crypto mining operations reliant on Nvidia’s GPUs.
• Geopolitical Risks: U.S.-China frictions limit Nvidia’s China market access, spurring local chip innovation and potentially increasing volatility in global tech stocks, including those tied to cryptocurrency ecosystems.

Conclusion

TSMC’s October 2025 revenue growth of 16.9% highlights both opportunities and challenges in the semiconductor industry, particularly for AI chip demand and Nvidia’s production strategy. As U.S.-China tensions persist, influencing global supply chains, the sector’s resilience supports ongoing advancements in technologies like crypto mining and blockchain. Investors and industry watchers should monitor capacity expansions and policy shifts for future stability, positioning themselves to capitalize on the evolving landscape of high-tech innovation.

The Taiwan Semiconductor Manufacturing Company (TSMC) announced a 16.9% revenue uptick for October 2025, the mildest monthly expansion since February 2024. This development has sparked fresh discussions on whether enthusiasm for AI chips is waning, even as experts anticipate 27.4% growth over the full quarter. TSMC’s shares have climbed 37% since the start of the year, demonstrating that market participants remain largely positive, at least for the moment.

Only recently, market participants offloaded technology holdings amid worries of overvalued assets. Prominent Wall Street voices have warned of an impending market adjustment.

Among them is Michael Burry of Scion Asset Management, who disclosed short positions against Nvidia, the frontrunner in AI semiconductors. Despite such cautions, the sector continues to channel massive investments into AI frameworks.

Major players including Meta, Amazon, Microsoft, and Alphabet plan to allocate over $400 billion toward AI infrastructure in 2026, representing a 21% increase from the previous year, as they vie for dominance in artificial intelligence.

Huang Advocates for Increased TSMC Output in Taiwan

During a two-day trip to Taiwan, Nvidia’s Jensen Huang engaged with TSMC CEO C.C. Wei, pressing for enhanced chip manufacturing. Huang described Nvidia’s trajectory as one of continual monthly strengthening.

This outreach occurs against a backdrop where demand surpasses available supply, with leading chip firms vying for space in TSMC’s Hsinchu operations.

Last month, Wei informed analysts that production limits persist, and TSMC is actively managing the equilibrium between supply and needs.

Beyond Nvidia, rivals such as AMD and Qualcomm rely on TSMC for fabrication needs. The firm also crafts bespoke semiconductors for Apple, powering devices like iPhones and additional products.

In a Bloomberg TV appearance, Qualcomm’s Cristiano Amon asserted that the immense potential of AI is frequently undervalued.

Nvidia Faces Barriers in China as Political Strains Intensify

Huang’s Taiwan itinerary also addressed escalating U.S.-China rivalries in AI. In remarks to the Financial Times, he observed that “China will win” thanks to cost-effective energy and supportive policies, though he subsequently refined this to acknowledge China’s competitive edge without endorsing dominance.

Speaking in Tainan on Friday, he affirmed no intentions to resume Blackwell chip exports to China: “There are no active discussions. We’re not planning any shipments to China at present.”

Huang has previously expressed interest in expanding Nvidia’s footprint in China, but governmental frictions between Washington and Beijing have impeded progress.

In October, President Donald Trump indicated he might address the Nvidia-China dynamics in talks with Xi Jinping, only to retract, leaving the matter untouched.

While U.S. authorities permit sales of Nvidia’s downgraded H20 chips to Chinese entities, Beijing has directed local businesses to prioritize indigenous options over imports.

Firms like Huawei and Cambricon are aggressively developing native AI processors, supported by the Communist Party’s drive for technological self-reliance away from U.S. dependencies.

Huang cautioned that American export controls might backfire, incentivizing China to hasten its own AI semiconductor advancements.

“China decides when Nvidia products can return to their market,” he noted. “I anticipate a policy shift on their end.”