Nvidia Surpasses Apple as TSMC's Largest Customer, Contributing 13% of Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Should l Buy NVDA?
Source: Benzinga
- Customer Status Change: Nvidia publicly confirmed it has surpassed Apple to become TSMC's largest customer, contributing approximately 13% of total revenue, highlighting the significant impact of AI demand on the semiconductor supply chain.
- Market Share Reversion: Nvidia was TSMC's largest customer in the early 2000s before being overtaken by Apple in the 2010s, and this return signifies a shift in industry dynamics driven by the rise of AI technology.
- Future Outlook: Analysts expect Nvidia's AI leadership to extend into 2026, particularly as sustained spending on AI infrastructure drives strong performance in the AI accelerator market.
- Stock Price Dynamics: Nvidia shares rose 0.82% to $184.83 in premarket trading on Thursday, reflecting market confidence in its future growth, while TSMC's stock also increased by 1.63%.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 216.610
Low
200.00
Averages
264.97
High
352.00
Current: 216.610
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Financial Performance: In Q4 of fiscal 2026, Nvidia reported revenue of $68.1 billion, reflecting a 73% year-over-year increase, while gross margin expanded to 75.2%, indicating that the company's strategic pivot towards AI has significantly enhanced its profitability.
- Future Growth Potential: Nvidia anticipates revenue of $78 billion for Q1 of fiscal 2027, representing a growth rate of approximately 77%, and CEO Jensen Huang projects at least $1 trillion in revenue from Blackwell and Vera Rubin chip sales by the end of 2027, highlighting robust market demand.
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- Strong Financial Performance: In Q4 of fiscal 2026, Nvidia reported revenue of $68.1 billion, reflecting a 73% year-over-year increase, while gross margin expanded to 75.2%, indicating that the company's strategic pivot towards AI has significantly enhanced its profitability.
- Future Growth Potential: Nvidia anticipates revenue of $78 billion for Q1 of fiscal 2027, representing a growth rate of approximately 77%, and CEO Jensen Huang projects at least $1 trillion in revenue from Blackwell and Vera Rubin chip sales by the end of 2027, highlighting robust market demand.
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See More
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- Expansion Strategy: Nvidia's Indian subsidiary has leased approximately 760,000 square feet of office space in Bengaluru's Mahadevpura area under a 10-year agreement valued at over $130 million, highlighting its aggressive expansion in India's AI and engineering ecosystem.
- Security Deposit: The company has paid a security deposit exceeding $3.6 million as part of the agreement, which not only underscores its commitment to the new office space but also lays a foundation for future business growth.
- Leasing Scale: This transaction ranks among the largest office leasing deals in Bengaluru, more than doubling Nvidia's known office footprint in India, thereby further solidifying its position in the local market.
- Lease Commencement: The lease commenced on April 1, 2026, covering 12 floors at Bagmane Capital's Memphis South Tower, marking Nvidia's long-term commitment to the Indian market.
See More
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- Customer Diversity: CoreWeave stated that OpenAI is not its only customer, with companies like Meta, Microsoft, and Google also on its client list, indicating a broad demand within the AI ecosystem despite market pressures.
- Demand Exceeds Supply: CoreWeave emphasized that as AI deployment increases, the demand for computing continues to grow, particularly in inference, suggesting the company maintains competitiveness in a rapidly evolving market.
- Market Reaction: Following The Wall Street Journal's report that OpenAI missed internal targets, CoreWeave's stock fell nearly 8%, although it later recovered somewhat, reflecting market concerns about AI-related companies.
- Retail Investor Sentiment: Despite stock volatility, retail investor sentiment for CoreWeave on Stocktwits remains bullish, with message volumes nearly quadrupling in 24 hours, indicating confidence in the company's future growth.
See More
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- Revenue Growth Slowdown: OpenAI has fallen short of its own revenue and user growth estimates, raising concerns about its ability to meet massive data center spending plans, which could impact its future funding capabilities.
- Cost Control Measures: CFO Sarah Friar has expressed worries about the company's ability to fund future compute agreements and is working with other executives to cut costs as the board scrutinizes computing deals more closely.
- Strategic Partnership Changes: OpenAI has made significant changes to its long-standing partnership with Microsoft, capping revenue share payments and removing Microsoft's exclusive license to its intellectual property, which may affect future revenue streams.
- Market Reaction: Shares of chipmakers and tech companies, such as Oracle, have slumped following the report, reflecting market concerns about OpenAI's financial health, especially ahead of its anticipated public offering later this year.
See More
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- Revenue Growth Issues: OpenAI's revenue and user growth have missed internal targets, raising concerns about the company's ability to support its massive data center spending, especially ahead of its uncertain initial public offering.
- Executive Cost Concerns: CFO Sarah Friar has expressed worries about funding future compute agreements if revenue slowdowns persist, and is collaborating with other executives to control costs in response to the board's increased scrutiny of computing deals.
- Massive Partnership Agreements: OpenAI has signed a $300 billion five-year computing deal with Oracle and established multi-billion dollar partnerships with Nvidia and Amazon, making the success of these agreements closely tied to OpenAI's financial health.
- Strategic Changes with Microsoft: OpenAI recently announced significant changes to its partnership with Microsoft, capping revenue share payments and ending Microsoft's exclusive license to its intellectual property, which could impact future financial arrangements and market competitiveness.
See More
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- Commercial Shift: During the latest earnings call, CEO Mark Zuckerberg announced Meta's pivot from open-source to a commercial AI strategy with the launch of its first closed-source model, Muse Spark, aimed at competing with paid services from Google and OpenAI, with Q1 revenue expected to rise 31% to $55.6 billion, highlighting the company's commitment to the AI market.
- Talent Investment: Zuckerberg's $14.3 billion investment in Scale AI and the hiring of former GitHub CEO Nat Friedman signal an aggressive rebuild of Meta's internal AI team to bridge the gap with market leaders and enhance technological capabilities.
- Advertising Revenue Potential: While vision models currently lag behind text in hype, analysts believe Meta's superior image generation tools will unlock advertising budgets by automating high-performing creative, driving short-term revenue growth and further solidifying its market position.
- Capital Expenditure Pressure: With projected capital expenditures hitting $135 billion, investors are concerned about the company's massive infrastructure spending and recent 10% workforce reduction, demanding a clear roadmap for profitability to support its long-term growth strategy.
See More
