Dan Nystedt: Nvidia will contribute 11% of TSMC's revenue in 2023

According to financial expert Dan Nystedt's forecast, Nvidia contributed 11% of TSMC's revenue in 2023. Apple, which TSMC refers to as "Customer A" in its filings with the U.S. Securities and Exchange Commission, contributed 25% of TSMC's revenue last year, bringing it $17.52 billion in revenue. Nystedt estimates that Nvidia, listed as "Customer B," paid TSMC $7.73 billion in 2023, contributing 11% of net sales.

Apple has long been TSMC's largest customer and will likely remain so for the next few years. Despite recent increases in orders from AMD, MediaTek, and Qualcomm, no other customer accounts for more than 10% of TSMC's net revenue.

Nvidia's order volume surged due to strong demand for its accelerator cards H100 and A100 and the booming development of artificial intelligence technology.

Due to the growing demand for AI GPUs, Nvidia's revenue share contribution to TSMC will further rise in 2024. The company has reserved silicon and CoWoS capacity to ensure consistent supply of its high-end AI processors.

It remains to be seen whether AMD can account for more than 10% of TSMC's net revenue this year. AMD's share at TSMC could rise due to strong sales of AMD's EPYC processors in the data center space and reportedly strong demand for its Instinct MI300 series of AI and HPC products.

Increased demand for AI GPUs could also impact consumer-focused graphics cards such as the upcoming GeForce RTX 5000 series based on the "Blackwell" architecture, which isn't surprising since most leading manufacturers rely on TSMC.

However, it's only a matter of time before demand outstrips TSMC's manufacturing capabilities, which will ultimately lead to higher prices than last year and shortages of consumer-grade graphics cards.

From 3DMGame