The out-of-sorts Spaniard, a 14-time Grand Slam champion, was never in contention against a player he had beaten the last 17 times they met stretching back to 2006.
The Czech seventh seed insisted ahead of the match that the imposing statistic meant little and he came out of the blocks firing, winning 6-2, 6-0, 7-6 (7/5) despite a mini Nadal revival in the third set.
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"I started pretty well, but you are playing Rafa and you have to keep going until the last point."
His upset win means he will face either Andy Murray or Nick Krygios for a place in the final.
In contrast to Nadal's lacklustre performance, the experienced Sharapova dominated young Canadian pretender Bouchard to set up an all-Russian semi-final with dark horse Ekaterina Makarova.
The world number two, who could claim the top ranking from arch-rival Serena Williams if she wins the title, showed her intent by breaking the seventh seed in the first game of the match and never looked back.
Billed as a Glam Slam showdown between two of the game's most marketable women, an intense Sharapova was all business in the crushing 6-3, 6-2 win on a cool, overcast Melbourne day.
"She's been playing so well at Slams, so confident and so aggressive," said the Russian, gunning for a sixth Grand Slam crown and her first in Australia since 2008.
"I just really tried to take that away from her a little bit. I did a great job of that today."
She now faces Makarova, who raced through her match against third seed Simona Halep, thrashing the more-fancied Romanian 6-4, 6-0.
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