KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Taiwan Semiconductor Manufacturing Co (TSMC) reported a slowdown in monthly sales growth for October, reigniting debate over whether the artificial intelligence (AI) boom driving global chip demand is beginning to lose steam.
The world’s largest contract chipmaker posted a 16.9% year-on-year revenue increase last month — its slowest pace since February 2024. Analysts expect TSMC’s overall sales to rise around 16% in the current quarter, still a solid expansion but notably slower compared to recent surges.
Despite the moderation, TSMC shares have climbed about 37% year-to-date, supported by relentless AI-related demand from its biggest customers.
Market Correction Fears Resurface
Last week’s sudden selloff across Asian tech stocks has rattled investor confidence, underscoring growing caution that the record-breaking rally in AI and semiconductor counters may be peaking.
Several Wall Street executives have warned of an impending correction, with Michael Burry’s Scion Asset Management revealing bearish bets against Nvidia, the current face of the AI chip frenzy.
Big Tech Keeps the Faith
Still, industry leaders remain upbeat. Meta Platforms, Alphabet, Amazon, and Microsoft are collectively set to invest more than US$400 billion (RM1.66 trillion) in AI infrastructure next year — a 21% jump from 2025 — to cement their dominance in the emerging AI economy.
Nvidia CEO Jensen Huang, whose firm relies heavily on TSMC to fabricate its cutting-edge GPUs, said over the weekend that business is “growing month by month, stronger and stronger.”
During his recent visit to Taiwan, Huang met with TSMC CEO CC Wei, reportedly seeking to secure additional chip supply as global demand continues to outpace production capacity.
TSMC remains the go-to manufacturer not just for Nvidia, but also for Advanced Micro Devices (AMD), Qualcomm, and Apple, which relies on TSMC for its iPhone and Mac silicon chips.
“Capacity Still Tight,” Says TSMC Chief
Despite the slowdown, Wei maintains that TSMC’s capacity remains fully booked, as chipmakers scramble for access to its most advanced nodes.
“The company is working hard to narrow the gap between demand and supply,” Wei told analysts in October.
Meanwhile, Qualcomm CEO Cristiano Amon echoed optimism, telling Bloomberg TV that the world is still “underestimating how big AI will get.”
Bottom Line
While TSMC’s cooling revenue growth has prompted caution among investors, the fundamentals of AI-driven chip demand remain intact. The latest figures may signal a temporary breather in the semiconductor rally — not the end of it.
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