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| Nvidia is launching the next-gen Vera Rubin GPUs for AI in the second half of 2026. |
The engine of the artificial intelligence revolution isn't just software—it's silicon. And right now, no company is fueling that engine more than Nvidia. Thanks to an insatiable, industry-wide demand for its powerful data center hardware, Nvidia has not only become the world’s most valuable company but has also achieved a pivotal behind-the-scenes milestone: it is now the single largest customer for the world’s leading chip manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC).
This seismic shift in the semiconductor landscape, confirmed by Nvidia’s own CEO, marks the end of Apple’s long-held reign as TSMC’s most favored partner and signals a new era where AI infrastructure is the dominant force in tech.
The Numbers Behind the Takeover
Nvidia’s ascent to the top of TSMC’s client list is a direct reflection of its explosive financial performance. The company reported a staggering 62% year-over-year revenue increase for Q3 of its 2026 fiscal year, a surge overwhelmingly driven by its Data Center segment. Products like the powerhouse H200 GPU have become the gold standard for training and running massive AI models.
According to industry analysis, Nvidia's Data Center revenue for Q3 2025 even surpassed Apple's iconic iPhone revenue for the first time—a symbolic passing of the torch in the tech economy. As detailed in a report from Money.UDN, this revenue explosion propelled Nvidia past Apple's contribution to TSMC's bottom line in 2025.
Just a year earlier, in 2024, Apple accounted for a dominant 25% of TSMC's revenue, with Nvidia trailing at roughly 11%. The complete reversal of this dynamic within a single year underscores the unprecedented velocity of the AI boom.
What Losing the "MVP" Status Means for Apple
For years, Apple enjoyed unparalleled privileges as TSMC's marquee client. These benefits reportedly included significant pricing discounts and, crucially, priority access to the newest and most advanced process nodes—the lifeblood of creating faster, more efficient chips for iPhones, Macs, and iPads.
With Nvidia now occupying the top spot, that dynamic is poised to change. Industry whispers suggest TSMC is already flexing its renewed leverage, with rumors circulating that the foundry is pushing Apple to accept substantial price increases for its future chip orders.
“This isn’t about Apple struggling; the iPhone 17 series remains a massive success,” notes one industry analyst. “It’s about Nvidia’s growth curve being vertical. TSMC’s capacity is the world’s most critical tech resource, and it will naturally flow to the client with the most explosive and sustained demand—which, for the foreseeable future, is Nvidia’s data center business.”
The Bottom Line: A New King of Silicon
The implications of this shift are profound. TSMC’s manufacturing priorities will inevitably tilt toward fulfilling the enormous orders for Nvidia's data center GPUs, which are built on TSMC's cutting-edge process nodes like the "N3" (3nm) family and the upcoming "N2" (2nm) technology.
For Apple, it may mean navigating a slightly less favorable partnership, potentially impacting costs and scheduling. For the broader tech industry, it’s a clear indicator that the center of gravity has moved from consumer devices to AI infrastructure.
As confirmed by Nvidia CEO Jensen Huang in a recent podcast and echoed by analysts like Dan Nystedt and Beth Kindig, this changing of the guard at TSMC is more than a quarterly blip. It’s a structural realignment, solidifying that the age of AI is being built, quite literally, on Nvidia's hardware.
Looking for a powerful Apple device? Check out the latest iPhone 17 Pro, available in renewed condition on Amazon.
Sources: Money.UDN, Dan Nystedt on X, Beth Kindig on X.
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| Nvidia Data Center vs Apple iPhone revenue. |