By Daniel Sparks, The Motley Fool
Publication Date: 2026-10-17 03:17:00
Nvidia (NASDAQ:NVDA) investors got a new look at the demand for artificial intelligence (AI) chips on Thursday, Oct. 15. Taiwan Semiconductor Manufacturing (NYSE:TSM), 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.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
“[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.
Image source: Taiwan Semiconductor Manufacturing.
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