THE AI Squeeze: NVIDIA overtakes Apple as TSMC’s top revenue source notes a shift in the balance of power at the foundry, driven by the AI boom. For a prolonged duration, analysts postulate that by 2026 NVIDIA is poised to generate approximately $33 billion in revenue for TSMC—representing 22% of the foundry’s total turnover—thereby eclipsing Apple’s projected contribution of $27 billion, or roughly 18%, according to CNBC.
NVIDIA’s Chief Executive, Jensen Huang, acknowledged that NVIDIA has ascended to TSMC’s preeminent client, fuelled by demand for AI infrastructure silicon used in cloud service infrastructures. The article highlights the Elon Musk-founded xAI facility, which boasts over 550,000 NVIDIA AI accelerators, with 325,000 currently in the deployment phase.
It also explains that NVIDIA’s chips, being more expansive and intricate than Apple’s A-series and M-series processors, command higher fabrication costs and require advanced process nodes, packaging technologies, and higher-cost wafers. While Apple’s aggregate shipment volume remains higher, the per-chip revenue from NVIDIA’s AI-centric processors contributes to TSMC’s growing reliance on AI clientele, potentially reshaping its investment and capacity strategies.