PyUncut Infographic — TSMC Just Boosted Nvidia & Broadcom
Mobile‑optimized, white‑background report • Updated October 15, 2025
Why This Matters
TSMC’s latest monthly sales show robust demand for leading‑edge chips, signaling ongoing strength for key customers like Nvidia and Broadcom and for the broader AI hardware cycle.
Read the Signals
- Order strength held through September: No evidence of order pull‑forward; demand remained resilient.
- AI supply chain confirmation: TSMC’s outperformance mirrors aggressive ordering from Nvidia, Broadcom, and other AI chipmakers.
- Earnings watch: TSMC’s Q3 print and Q4 outlook (Oct 16) offer industry‑wide read‑throughs.
Implications for Key Names
Nvidia (NVDA)
Street expects ~55% YoY revenue growth over the next two quarters. AI GPU leadership persists, though competition is rising.
Broadcom (AVGO)
Diversified AI exposure across networking and custom silicon. A large custom AI chip program is expected to meaningfully contribute to growth next year.
TSMC (TSM)
Lower single‑name risk via diversified customers and manufacturing scale. Trades around ~29× forward earnings vs. NVDA ~42× and AVGO ~49×.
Actionable Takeaways
- Momentum check: TSMC monthly sales are a high‑signal proxy for AI hardware demand.
- Valuation discipline: Premium multiples for NVDA and AVGO raise downside sensitivity on any miss.
- Core exposure: Consider TSMC for broad AI hardware participation at relatively lower multiples.
- Risk monitor: Watch capacity ramps, node transitions, export controls, and customer concentration.
Suggested Post Script (Podcast)
“Follow the flow of innovation, not the hype. In silicon, the flow still runs through Hsinchu.”
Print / Save as PDFEpisode Theme: The Semiconductor Pulse That’s Powering AI
Welcome back to PyUncut, where we decode the trends behind market moves and tell the stories shaping tomorrow’s portfolios.
Today, we’re diving into fantastic news straight out of Taiwan — news that’s got Nvidia and Broadcom investors grinning from ear to ear.
Because when TSMC — the world’s most important chipmaker — sneezes, the entire semiconductor world catches a cold. But this time, TSMC isn’t sneezing. It’s sprinting.
💡 The Powerhouse Behind the AI Boom
Suppose you’ve ever wondered where the chips inside Nvidia’s powerful GPUs or Broadcom’s custom silicon are made. In that case, the answer almost always leads to one name — Taiwan Semiconductor Manufacturing Company, or TSMC.
They are the invisible engine behind today’s AI revolution. From data centers to your smartphone, if it’s cutting-edge silicon, chances are, it came from one of TSMC’s fabs.
And that’s why any update from this company isn’t just an earnings report — it’s a barometer for the entire tech industry.
📈 TSMC’s September Surprise
So, what just happened?
TSMC’s latest monthly data dropped — and it was massive.
- September sales soared 31.4% year-over-year, hitting NT$330.98 billion.
- Add in July and August, and Q3 revenue hit NT$989.92 billion, smashing past management’s own guidance of NT$957 billion.
That’s not just a beat. That’s a beat with conviction.
Analysts had speculated that some orders might’ve been pulled forward from September. But no demand held strong.
That means Nvidia, Broadcom, and other AI chipmakers kept ordering aggressively, showing the AI demand wave isn’t slowing.
🔍 The AI Chain Reaction
The last few months have been a frenzy of AI chip alliances:
- OpenAI’s massive $10B deal with Broadcom for custom silicon.
- Nvidia’s new architecture ramp-ups to feed hyperscaler hunger.
- Cloud giants like Microsoft, Amazon, and Google are doubling down on data center AI infrastructure.
All that spending eventually ends up… right back at TSMC’s doorstep.
So when TSMC’s sales spike, it’s a direct reflection of how strong that AI hardware pipeline really is.
🧮 What It Means for Investors
Let’s unpack the ripple effect.
🔹 Nvidia
Analysts expect Nvidia’s sales to grow 55% year-over-year for each of the next two quarters.
Even with competition brewing, AI GPUs remain the crown jewel.
🔹 Broadcom
Broadcom, meanwhile, is having a breakout year. With its $10 billion custom AI chip deal with OpenAI set to kick in next year, revenue growth could accelerate to 33% in 2026.
That’s on top of its existing data center and networking dominance.
💰 The Valuation Problem
But — and there’s always a “but” in investing — the market already knows.
- Nvidia stock: Up roughly 40% this year, trading at 42× forward earnings.
- Broadcom stock: Up about the same, trading at an even steeper 49× forward earnings.
Those are nosebleed valuations.
At these levels, any missed earnings — even a small one — could send shares tumbling.
🧭 The Smarter Play: Look at TSMC Itself
Here’s the twist.
While Nvidia and Broadcom are the shiny faces of AI, TSMC is the quiet powerhouse behind them.
And unlike its clients, TSMC trades at just ~29× forward earnings — a relative bargain considering its market dominance and diversified customer base.
Even if growth slows modestly later this year, TSMC still looks like the smarter, lower-risk way to ride the AI megatrend.
You’re not betting on one chip designer — you’re owning the global AI supply chain itself.
🌍 The Bigger Picture: AI’s Industrial Backbone
This surge in semiconductor demand isn’t just about GPUs or custom AI chips.
It’s about the infrastructure of the next industrial revolution.
As Amazon’s Jeff Bezos once said, “It’s hard to overstate the impact.”
Cathie Wood calls AI an $80 trillion opportunity by 2030 — that’s the equivalent of 18 Nvidias or 33 Amazons.
And nearly all of that future innovation — from self-driving cars to intelligent cloud networks — runs through one choke point: the semiconductor supply chain led by TSMC.
🧩 Takeaways for Investors
✅ TSMC’s blowout September confirms continued AI chip momentum.
✅ Nvidia and Broadcom’s growth look strong, but expectations are sky-high.
✅ Valuation risk makes them vulnerable to short-term corrections.
✅ TSMC remains the backbone — and potentially the best way to invest in AI hardware without overpaying.
🎙️ Closing Thoughts
At PyUncut, we like to say: follow the flow of innovation, not just the hype.
And right now, that flow runs through silicon wafers in Taiwan.
As TSMC gears up to release its Q3 earnings and Q4 outlook on October 16, every investor in the AI ecosystem will be watching closely.
Because this isn’t just about one company.
It’s about the entire future of computing — and who controls the keys to that kingdom.
🏁 PyUncut Insight
If you believe AI is the next industrial revolution, owning TSMC is like owning the factories that built the internet.
Quiet. Powerful. Indispensable.
Stay tuned to PyUncut for more deep dives on AI, tech, and markets that move the world.