Bloomberg Tech TSMC Beats Expectations, Raises Revenue Outlook
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Oct 16, 2025 TSMC's impressive Q3 results highlight strong AI demand, prompting a positive revenue outlook. Meanwhile, China's new export controls on rare earths stir up global tensions and impact trade relations. Apple faces challenges as its search AI lead departs, signaling turbulent times for its AI aspirations. Additionally, discussions on market strategies reveal insights about AI's sustainability and the implications of equity dilution for stock prices during this tech hype. The evolving landscape of big data centers and cybersecurity breaches further adds to the intrigue.
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TSMC Signals Stronger AI Demand
- TSMC raised its 2025 sales growth outlook twice, signaling stronger AI-driven demand for advanced chips.
- The company is supply-constrained but rapidly expanding capacity in Taiwan and the U.S. to meet customers like NVIDIA.
Rare Earths Become Geopolitical Leverage
- China unveiled export controls on rare earths, prompting global pushback and G7 attention.
- The move could be leveraged in trade talks but risks broad geopolitical and economic fallout if enacted.
Balance AI Exposure With Value Plays
- Use a barbell investment approach: keep exposure to AI leaders while adding value and small-cap stocks.
- Avoid chasing unprofitable speculative names and monitor ROI on heavy AI spending.