TSMC's revenue grew in October at the slowest pace since 2024

The world's largest contract semiconductor manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC), which produces processors for Nvidia, reported a slowdown in revenue growth in October. It grew 16.9% year-over-year, the slowest pace since February 2024, Bloomberg points out . The agency believes that this could be a sign of cooling demand for AI technologies.

At the premarket on Nov. 10, TSMC's American depositary receipts were up nearly 3 percent, however.

Since the beginning of the year, the company's quotes have risen by about 37% amid investor optimism about demand for its products. It owns the most advanced microchip manufacturing facilities in the world and produces about 90% of high-tech semiconductors, including chips for AI, writes MotleyFool. TSMC's main customers, besides Nvidia, are chipmakers AMD and Broadcom.

In October, Morningstar analysts raised the fair value of TSMC's receipts to $310 following the release of a positive third-quarter report. This target implies a potential upside of about 8% from the current value. Morninginstar believes that the company's securities remain undervalued, as they estimate that demand for AI computing will be long-term and sustainable.

The market as a whole positively estimates prospects of TSMC. According to MarketWatch, the vast majority of analysts - 47 out of 49 - advise to buy ADR of the company. The remaining recommendations are neutral.

This article was AI-translated and verified by a human editor