TSMC Dominates AI Chip Market, Nvidia Replaces Apple as Top Customer

Key Takeaways

• TSMC controls about 73% of the pure-play foundry market and nearly 90% of the most advanced nodes
• TSMC full-year 2025 revenue reached about $122 billion, up 36% year over year
• Nvidia replaced Apple as TSMC's largest customer earlier this year
• Micron reported fiscal 2026 revenue of $133 billion, up 256% from the prior year
• Synopsys reported revenue of nearly $2.5 billion in fiscal Q3 2026
• Amazon's custom AI chip business has reached over a $25 billion annual revenue run rate
• Vertiv's operating profits jumped 44% year over year to $638 million in Q2
• Arista Networks reported 38% year-over-year revenue growth in Q2 with $5.1 billion in short-term deferred revenue
• Hark reached a $6 billion valuation after a $100 million funding round
• California passed twelve bills regulating AI across employment, healthcare, and digital content

TSMC is the key AI chip stock through 2030

Taiwan Semiconductor Manufacturing (TSMC) manufactures AI chips for companies like Nvidia and AMD rather than designing them. TSMC controls about 73% of the pure-play foundry market and nearly 90% of the most advanced nodes. Full-year 2025 revenue reached about $122 billion, up 36% year over year. Through the first half of 2026, revenue grew 37% year over year to $76.1 billion. Nvidia replaced Apple as TSMC's largest customer earlier this year.

3 overlooked stocks power AI chips for Nvidia and AMD

ASML, Synopsys, and Micron Technology supply essential steps in the chipmaking process that Nvidia and AMD depend on. ASML provides extreme ultraviolet lithography systems used to print circuit patterns on chips. Synopsys supplies electronic design automation software and reported revenue of nearly $2.5 billion in the fiscal third quarter of 2026. Micron provides DRAM and NAND flash memory and reported fiscal 2026 revenue of $133 billion, up 256% from the prior year.

5 ETFs to benefit from the next phase of AI

The VanEck Semiconductor ETF (SMH), First Trust Cloud Computing ETF (SKYY), iShares Expanded Tech-Software Sector ETF (IGV), First Trust Nasdaq Cybersecurity ETF (CIBR), and First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index Fund (GRID) are highlighted as ways to invest in AI. SMH focuses on semiconductor infrastructure while SKYY holds cloud computing companies. IGV includes software firms, CIBR covers cybersecurity companies, and GRID holds companies building electrical infrastructure for data centers.

TSMC is the key AI chip stock through 2030

Taiwan Semiconductor Manufacturing (TSMC) manufactures AI chips for companies like Nvidia and AMD rather than designing them. TSMC controls about 73% of the pure-play foundry market and nearly 90% of the most advanced nodes. Full-year 2025 revenue reached about $122 billion, up 36% year over year. Through the first half of 2026, revenue grew 37% year over year to $76.1 billion. Nvidia replaced Apple as TSMC's largest customer earlier this year.

TSMC is the key AI chip stock through 2030

Taiwan Semiconductor Manufacturing (TSMC) manufactures AI chips for companies like Nvidia and AMD rather than designing them. TSMC controls about 73% of the pure-play foundry market and nearly 90% of the most advanced nodes. Full-year 2025 revenue reached about $122 billion, up 36% year over year. Through the first half of 2026, revenue grew 37% year over year to $76.1 billion. Nvidia replaced Apple as TSMC's largest customer earlier this year.

3 AI Cloud Stocks to Watch as Infrastructure Boom Grows

Historical infrastructure booms have created big winners and losers. The AI cloud market is following the same pattern. Amazon leads with AWS and AI tools like Bedrock and SageMaker. CoreWeave operates 51 data centers with over 250,000 Nvidia GPUs and has a $104.2 billion backlog. Equinix is the largest data center REIT with 282 centers and pays a 2% dividend yield.

Arista Networks Gains as AI Data Centers Expand

Arista Networks specializes in Ethernet switches that move data within AI data centers. Microsoft accounts for over one-quarter of its 2025 revenue, with Amazon, Alphabet, and Meta also as major customers. The company reported 38% year-over-year revenue growth in the second quarter and has $5.1 billion in short-term deferred revenue. Its switches are considered the central nervous system of AI infrastructure.

Vertiv's Liquid Cooling Tech in High Demand for AI

AI chips generate more heat than air-cooling can handle, making liquid cooling essential. Vertiv is a leader in liquid cooling systems for AI data centers and has partnered with Nvidia. Its operating profits jumped 44% year over year to $638 million in Q2. The company is developing an 800 VDC power portfolio for Nvidia's Rubin Ultra platform expected in 2027. Vertiv is also expanding into the Asia Pacific region.

Amazon Seen as Top AI Stock Pick Before 2027

Amazon is a leader in both e-commerce and cloud services, making it a strong AI investment. AWS has an annual revenue run rate of $169 billion and could eventually reach trillion-dollar revenue. Amazon's custom AI chip business has reached over a $25 billion annual revenue run rate. The company also offers AI products through AWS including chips and platforms for training custom AI models.

TSMC Is a Strong but Steady AI Stock Choice

Taiwan Semiconductor is a chip foundry that produces chips for Nvidia, AMD, Apple, and many others. Its scale is unmatched, making it nearly impossible for clients to switch to competitors. TSMC's revenue and profits have grown at a respectable pace. However, its growth rate is slower than companies like Nvidia and AMD, making it a good but not the fastest-growing AI stock to own.

Vertiv's liquid cooling tech may outpace Nvidia and Palantir

Vertiv is a leader in liquid cooling systems needed for AI data centers. Its operating profits jumped 44 percent year over year to $638 million in Q2. The company partners with Nvidia and is expanding into the Asia Pacific region. CEO Giordano Albertazzi expects strong performance to continue as AI demand grows.

Vertiv seen as a better AI investment than Nvidia and Palantir

AI chips overheat and need liquid cooling, which Vertiv provides. The stock trades at a compelling valuation despite strong demand. Vertiv's 800 VDC power portfolio supports Nvidia's Rubin Ultra platform rolling out in 2027. The company has a strong backlog and expects another strong year overall.

Taiwan Semiconductor is a solid but slow AI stock pick

Taiwan Semiconductor, or TSMC, is a chip foundry that makes chips for Nvidia, AMD, Apple, and others. Its scale is unmatched, giving it a guaranteed role in AI. However, its revenue and profit growth is slower than competitors like Nvidia and AMD. This makes it a good AI stock but not a great one.

Qualcomm's AI infrastructure push is an overlooked opportunity

Qualcomm is pivoting into AI infrastructure and expects big revenue growth in fiscal 2027. It already has multiyear deals with Amazon and Meta Platforms. The company expects a $200 billion CPU market and $65 billion connectivity market by fiscal 2029. Non-handset revenue growth could jump from 24 percent to over 60 percent.

Steve Eisman disputes Michael Burry's bearish AI view

Steve Eisman has publicly challenged fellow trader Michael Burry over his negative take on the AI trade. Burry has expressed bearish sentiments about AI stocks and chips like Nvidia. Eisman disagrees with this cautious stance. The exchange highlights a sharp divide among prominent investors on AI's future.

Michael Burry stays bearish on AI stocks as market hits new highs

Michael Burry keeps a pessimistic view on AI stocks even though the S&P 500 and Nasdaq are reaching new highs. He believes the market is in denial about the end of the AI trade. His stance contrasts with the broader market optimism. The debate centers on whether AI stocks are overvalued.

Hark launches proactive AI app before 2027 hardware release

Hark launched Hark Pro, a proactive AI app available for free on web, iOS, and Android. The app acts as a personal delegate handling tasks like grocery orders, bill payments, and trip planning. Its cloud computer called Handoff can run up to six browsers at once. Paid tiers cost $20 and $100 per month. Hark plans to release hardware devices in 2027 through AT&T. Founder Brett Adcock funded the company with $100 million and it reached a $6 billion valuation.

Hark releases privacy focused AI personal assistant app

Hark released Hark Pro, an AI personal assistant that emphasizes user privacy. The app can access email, calendar, and other digital accounts to complete tasks like booking flights and paying bills. It shows users how the agent navigates the web to build trust. Unlike Meta or OpenAI, Hark says it does not sell ads or steal data. The company plans to release an AI native hardware device in 2027. Hark's model is trained specifically for computer use rather than general knowledge.

AppLovin faces fraud lawsuit over delayed AI video tool

AppLovin is facing a securities fraud class action lawsuit in the U.S. The lawsuit claims the company misstated information about its AI driven ad model. It also alleges delays in launching a generative AI video tool hurt revenue and product development. The case highlights how much AppLovin depends on timely AI execution. Delays in new tools can affect advertiser confidence and increase legal costs.

California passes laws regulating AI in jobs and healthcare

California enacted twelve bills regulating AI across employment, healthcare, digital content, and biosecurity. Employers cannot make firing decisions based only on automated assessments and must have human review. Lawyers are barred from fully delegating core legal work to AI platforms. Healthcare providers must keep independent judgment with clinicians while AI serves only an advisory role. The laws also ban tampering with watermarks on synthetic content and require gene synthesis companies to screen for dangerous pathogens. These measures aim to balance innovation with human oversight and public safety.

Precisely launches unified platform to make enterprise data AI-ready

Precisely introduced a new platform that helps businesses manage data across cloud, on-premises, and mainframe systems. The tool uses embedded AI features like automated quality rules and data enrichment recommendations. It aims to give organizations a consistent foundation for trusted AI and business decisions. The platform works without requiring data migration to a single ecosystem.

Energy security and AI reshape Asia trade finance demand

Senior bankers at a GTR roundtable in Singapore said energy security and AI infrastructure are reshaping trade finance across Asia. Companies are securing supplies further in advance and diversifying trading partners. Banks are responding with financing for longer supply chains and large projects. Participants said the search for security is affecting product usage and reviving demand for traditional instruments.

OpenAI to watermark ChatGPT outputs by default in the EU

OpenAI announced it will automatically watermark text generated by ChatGPT in the European Union. The move follows the EU AI Act that took effect in August requiring AI-generated content to be marked. Outside the EU the watermarking feature will be available but turned off by default. OpenAI has not yet shared details on how the watermarking will work.

Companies cut jobs as investments shift toward AI

Companies from Microsoft to FICO have announced layoffs linked to AI adoption this year. A Reuters factbox lists AI-linked global layoffs announced since October 2025. The data shows job losses emerging in sectors most exposed to automation. The trend deepens concerns that AI will upend established industries.

How AI could threaten the US dollar

The US dollar's status as the world's premier currency faces new threats from the rise of artificial intelligence. Experts say widespread AI adoption could disrupt the global financial system and reduce the dollar's appeal. The euro and yuan are also gaining strength against the dollar. Digital currencies and declining dollar use in trade add further pressure.

Sources

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• Not Nvidia. Not Micron. If I Could Buy and Hold Only 1 Artificial Intelligence (AI) Chip Stock Through 2030, It Would be This One.
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• Is Taiwan Semiconductor the Best AI Stock to Buy Now?
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• The Overlooked AI Stock Poised to Outperform Nvidia and Palantir
• Is Taiwan Semiconductor the Best AI Stock to Buy Now?
• Qualcomm's AI Infrastructure Pivot Is Underappreciated
• Steve Eisman hits back at Michael Burry's bearish take on the AI trade
• Michael Burry's Bearish View. The Market Is In 'Denial' About The End Of The AI Trade.
• AI startup Hark launches proactive app ahead of 2027 hardware debut
• Hark releases an AI personal assistant with a focus on privacy
• AppLovin Stock Faces Fraud Suit Over Delayed AI Video Tool
• California Enacts Laws Regulating Artificial Intelligence in Employment, Healthcare and Biosecurity
• Precisely Introduces New Unified Data Management Platform to Make Enterprise Data AI-Ready
• Energy security and AI infrastructure redraw Asia’s trade finance map
• OpenAI will watermark ChatGPT outputs by default—but only in the EU
• Factbox-Companies cutting jobs as investments shift toward AI
• How AI could scupper the dollar