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TSMC's Lead in AI Chipmaking Grows as Nvidia Dominance Fuels Demand

AI data‑center spending by major chip designers keeps orders flowing to TSMC as a neutral manufacturing partner.

Overview

  • Counterpoint Research estimates TSMC held about 72% of global foundry revenue by the end of Q3 2025, with Samsung at roughly 7%.
  • TSMC reported Q3 2025 sales up 41% year over year, with a 59.5% gross margin and a 50.6% operating margin.
  • Shares of TSMC rose more than 50% in 2025, and the stock is discussed as attractive at roughly 31 times earnings.
  • Wall Street projects TSMC’s 2026 revenue will grow about 21% in New Taiwan dollars.
  • Nvidia retains an estimated 90% share of AI data‑center GPUs and has expanded its ecosystem with the SchedMD acquisition and a Groq technology license, while its Rubin architecture is expected in 2026, which together could support continued TSMC demand.