Key Takeaways
1. Nvidia has become the world’s largest company with a market valuation of approximately $4.3 trillion, driven by demand for Data Center equipment from AI firms.
2. In 2025, Nvidia surpassed Apple to become TSMC’s top client, significantly increasing its revenue share from 11% to more than Apple’s 25%.
3. Nvidia’s Data Center revenue in Q3 2025 exceeded Apple’s iPhone revenue for the first time.
4. TSMC may soon prioritize Nvidia over Apple, possibly offering Nvidia the same privileges Apple previously enjoyed.
5. Despite Apple’s success with the iPhone 17 series, Nvidia’s strong growth trajectory is expected to influence TSMC’s future strategies.
Thanks to an unmatched surge in demand for Data Center equipment from AI firms, Nvidia has now become the world’s biggest company with a market valuation of approximately $4.3 trillion. Their growth was especially impressive in 2025, showcasing a 62% Year-over-Year increase in revenue for Q3 FY2026. The Data Center items, particularly the H200, played a pivotal role in driving this revenue surge. Thus, it’s not shocking to learn that Nvidia has reportedly emerged as the largest customer for TSMC, given that its latest Data Center and client GPUs use TSMC’s advanced process nodes.
Nvidia Surpasses Apple
In a podcast, Nvidia’s CEO Jensen Huang disclosed that Nvidia has surpassed Apple to become TSMC’s top client in 2025. In 2024, Apple represented about 25% of TSMC’s revenue, while Nvidia made up less than half at 11%. This indicates that in 2025, Nvidia generated more revenue for TSMC than Apple, a claim supported by Nvidia’s record-setting Q3 FY2026 earnings.
Record-Breaking Revenue
According to information shared by I/O Fund (cited by Beth Kindig on X), Nvidia’s revenue from Data Centers in Q3 2025 surpassed Apple’s iPhone revenue for the very first time.
For a considerable time, Apple has received special treatment from TSMC, which included discounts and priority access to the latest process nodes. This was understandable, given that Cupertino’s orders formed a significant part of TSMC’s yearly earnings. With Nvidia now taking over Apple’s position, it is reasonable to anticipate that TSMC will extend the privileges previously exclusive to Apple to Team Green.
Future Outlook
Rumors are already circulating that TSMC is urging Apple to agree to a significant price increase. While the accuracy of this information remains uncertain, it seems likely that TSMC will prioritize Nvidia over Apple in the future, especially since Nvidia’s Data Center business shows no signs of slowing down.
That’s not to suggest that Apple is struggling, as the iPhone 17 series has gained considerable popularity. However, the momentum and anticipated growth of Nvidia will surely be crucial indicators for TSMC moving forward.
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