Nvidia Surpasses Apple to Become TSMC's Largest Customer as Trading Volume Drops to 31st Place

Market Overview

On February 27, 2026, TSMC shares ended the trading session down by 0.59%, indicating a slight dip in investor confidence. The day's trading volume reached $3.37 billion, which was a notable 38.22% decrease compared to the previous day, placing TSMC at 31st for market liquidity. Although the stock price remained relatively stable, the sharp drop in trading activity points to waning short-term interest or increased uncertainty among market participants.

Major Influences

In 2025, Nvidia overtook Apple to become TSMC’s top customer, marking a significant change in the company’s revenue composition. Nvidia contributed NT$726.9 billion (US$23.2 billion) to TSMC’s revenue, doubling its previous year’s total and raising its share of TSMC’s income to 19%, up from 12% in 2024. This shift highlights the rapid expansion of the AI industry, which is fueling greater demand for advanced chip manufacturing. Meanwhile, Apple’s share of TSMC’s revenue dropped to 17% in 2025 from 22% the year before, despite a modest 3.33% increase in actual dollar value.

This development demonstrates TSMC’s strategic focus on sectors with high growth potential. Experts attribute this trend to Nvidia’s leadership in AI infrastructure, especially its need for state-of-the-art semiconductor technology for machine learning and data center solutions. The relationship was further confirmed when Nvidia CEO Jensen Huang publicly acknowledged the company’s role as “client A,” the largest revenue contributor in TSMC’s financial reports. This partnership not only secures a vital income stream for TSMC but also places the company at the cutting edge of next-generation computing advancements.

Looking forward, analysts expect Nvidia to maintain its leading position in 2026, propelled by ongoing growth in AI adoption across cloud services, autonomous technologies, and enterprise applications. Nvidia’s recent announcement to establish a new headquarters in Taipei’s Beitou-Shilin Technology Park further signals its long-term commitment to the region. For TSMC, this move enhances its network of high-value clients and solidifies its status as a central player in AI innovation.

TSMC continues to hold a commanding presence in the global semiconductor industry, accounting for roughly 70% of worldwide chip production in 2025. Its market leadership is built on advanced technology, large-scale operations, and a fabless model that attracts leading technology firms. The company’s strong operating margins, even amid fierce competition, underscore its strengths—such as a broad customer portfolio that now includes both AI leaders like Nvidia and established partners like Apple, as well as a strong commitment to research and development to stay ahead in advanced chip processes.

Although the recent stock price dip may be due to short-term market fluctuations or broader sector trends, TSMC’s core business remains solid. The rise of Nvidia as its largest client aligns with TSMC’s long-term strategy to focus on high-growth markets, ensuring continued demand for its advanced manufacturing services. As AI technologies progress, TSMC’s adaptability and drive for innovation are expected to be key to its ongoing leadership in the global semiconductor arena.