Nvidia Corp's (NASDAQ:NVDA) surge in artificial intelligence demand is reshaping the global semiconductor supply chain.
Nvidia has overtaken Apple Inc. (NASDAQ:AAPL) as Taiwan Semiconductor Manufacturing Co. Ltd's (NYSE:TSM) largest customer.
Nvidia chief Jensen Huang confirmed the change publicly for the first time during a recent podcast.
Nvidia now ranks as Taiwan Semiconductor's biggest client—an outcome he suggested would please Taiwan Semiconductor founder Morris Chang.
Podcast host Jodi Shelton recalled that Chang once shared a story from their first meeting, when Huang boldly told him Nvidia would one day become his largest customer or one of his biggest, Futunn News reported on Thursday.
The rapid rise of artificial intelligence has since shifted industry priorities. According to the report, Nvidia now contributes about 13% of Taiwan Semiconductor's total revenue.
Nvidia previously held that position in the early 2000s. However, Apple took the lead in the 2010s after outsourcing production of iPhone and iPad processors to Taiwan Semiconductor.
The report also mentions that Apple has reportedly secured about half of Taiwan Semiconductor's 2-nanometer capacity for its upcoming A20 and A20 Pro smartphone chips.
Analysts See Nvidia's AI Leadership Extending Into 2026
The chip designer became the first company to hit the $4.5 trillion market cap in October as the AI ambitions of companies like Microsoft Corp (NASDAQ:MSFT), Google parent Alphabet Inc (NASDAQ:GOOGL), and Amazon.com Inc (NASDAQ:AMZN) continue to fuel demand for Nvidia's graphics processing units.
JPMorgan analyst Harlan Sur said AI-driven demand continues to strongly favor Nvidia as the semiconductor sector heads into the fourth quarter of 2025 earnings season with momentum that should extend into 2026.
Sur tied Nvidia's strength to sustained AI infrastructure spending. The analyst sees meaningful upside in the AI accelerator market, which he estimates at roughly $200 billion in 2025.
Within that landscape, Sur keeps Nvidia as a top pick, citing its central role in accelerated compute.
Price Actions: Nvidia shares were up 0.82% at $184.83 during premarket trading on Thursday, according to Benzinga Pro data. Taiwan Semiconductor stock is up 1.63%.
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