Nvidia's exposure to Asian supply chains for components hits 90% of its production costs — marked increase from 65% could intensify as physical AI adds even more exposure
Nvidia's reliance on Asian supply chains for components has increased to 90% of its production costs, up from 65% a year ago. This dependency impacts both its data center GPUs and newer physical AI products like the Jetson Thor robotics platform, which compete for constrained resources such as TSMC's 3nm wafer capacity and LPDDR5X memory. The company is also increasing its dividend and facing rising investor expectations, with some predicting it could join the $1 trillion market cap club by year-end. AI
IMPACT Nvidia's increased supply chain costs and competition for resources could impact the availability and price of AI hardware, potentially affecting the pace of AI adoption.