Taiwan Semiconductor Manufacturing (NYSE: TSM), also known as TSMC, is the world's largest, most advanced contract chipmaker. It manufactures the smallest, densest, and most power-efficient chips for "fabless" chipmakers like Apple, Nvidia (NASDAQ: NVDA), and Advanced Micro Devices, and it's widely considered a bellwether of the semiconductor sector.

But last year, Nvidia actually became the world's first trillion-dollar chipmaker instead of TSMC. That was a bit surprising, since TSMC still generates more annual revenue than Nvidia, but Nvidia's valuations were also inflated by the buying frenzy in artificial intelligence (AI) stocks over the past two years.

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Source Fool.com