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TSMC Cements Foundry Lead as Nvidia Expands AI Edge

New-year analyses underscore durable AI demand, spotlighting TSMC near 72% foundry share with elevated profitability.

Overview

  • Counterpoint Research estimates TSMC controlled roughly 72% of global foundry revenue by the end of Q3 2025, up from about 65% in mid-2024.
  • Nvidia remains the dominant AI data-center GPU supplier with an estimated 90% share, reinforcing its position in core training workloads.
  • Recent moves deepen Nvidia’s software and inference footprint, including the acquisition of SchedMD (Slurm) and a technology license plus hiring from Groq.
  • TSMC posted strong Q3 2025 metrics with sales up 41% year over year, a 59.5% gross margin, a 50.6% operating margin, and a P/E around 31 cited in coverage.
  • Reporting points to Nvidia’s Rubin architecture as expected in 2026, which analysts suggest could further benefit suppliers such as TSMC.