市场研究

Our contract manufacturers procure components and assemble products on our behalf and we procure strategic components from suppliers based on our forecasts.

Our products rely on components that we purchase, or our contract manufacturers purchase on our behalf from a limited number of suppliers, including certain sole source providers.

Simultaneously, we are balancing customers’ requirements and lead times against the availability and lead times of key components and products from our suppliers and contract manufacturers.

Risks Related to Customers and Sales • inability to attract new large customers or sell additional products and services to our existing customers could adversely affect our revenue growth; • sales of our switching and routing platforms generate most of our product revenue; • inability to increase market awareness or acceptance of our new products and services may adversely affect our revenue; • sales prices of our products and services may decrease; • sales cycles can be long and unpredictable; • inability to offer high quality support and services offerings could adversely affect our busines

Distributors tend to have more limited financial resources than other systems integrators, value-added resellers and customers.

We market and sell our products through both our direct sales force and our channel partners, including distributors, value-added resellers, system integrators and OEM partners, and in conjunction with various technology partners.

While we may directly procure certain raw materials used in the production of our products, such as memory, substrates, and a variety of components, our suppliers are responsible for procurement of most raw materials used in the production of our products.

We utilize foundries, such as Taiwan Semiconductor Manufacturing Company Limited, or TSMC, and Samsung Electronics Co., Ltd., or Samsung, to produce our semiconductor wafers.

We engage with independent subcontractors and contract manufacturers such as Hon Hai Precision Industry Co., Ltd., Wistron Corporation, and Fabrinet to perform assembly, testing and packaging of our final products.

We refer to customers who purchase products directly from NVIDIA as direct customers, such as AIBs, distributors, ODMs, OEMs, CSPs, AI model makers, and system integrators.

The year over year increase in Graphics segment operating income was driven by the growth in revenue. 40 Table of Contents Concentration of Revenue We refer to customers who purchase products directly from NVIDIA as direct customers, such as AIBs, distributors, ODMs, OEMs, CSPs, AI model makers, and system integrators.

Factors that have caused and/or could in the future cause us to underestimate or overestimate demand, and impact the timing and volume of our revenue, include: • changes in product development cycles and time to market; • competing technologies and competitor product releases, announcements or other actions; • changes in business and economic conditions; • sudden or sustained government lockdowns or public health issues; • rapidly changing technology or customer requirements; • the availability of sufficient data center capacity or energy for customers to procure; • new product introductions a

Although most of our raw materials are available from multiple suppliers, some materials are purchased through sole-sourced suppliers.

We believe that well management of the relationships with our equipment suppliers is important for us as a major purchaser of semiconductor fabrication equipment.

In pursuit of high quality raw wafers, the majority of our raw wafers are supplied by a limited number of suppliers located in Taiwan, Japan, Germany, and Singapore.

Important factors that could cause those differences include, but are not limited to: • general local and global economic conditions, including impacts caused by geopolitical tensions; • the political stability of our local region ; • our ability to deal with the challenges and risks related to our global operations and expansion; • outlook of the major and emerging end markets for our products, such as high performance computing (“HPC”), smartphones, internet of things (“IoT”), automotive and digital consumer electronics; • the volatility of the semiconductor and electronics industry; • our a

We are working closely with our customers to address their needs in a sustainable manner.

Our competitors may also compete for our customers who seek to diversify their supply chains.

Our operations, particularly our manufacturing and service operations, depend on raw materials, components, products and services from third-party suppliers, and such suppliers’ ability to timely deliver the quantities and quality required at acceptable prices.

These fulfillment risks include but are not limited to: • unanticipated technical problems with equipment, requiring us to incur added expenses to remedy such problems; • changes in costs or shortages of components, materials, labor or construction equipment; • recognition of revenues over the term of the contract; • project modifications and changes to the scope of work resulting in unanticipated costs; • delays caused by local weather or other conditions beyond our control; • changes in regulations, permits or government policy; • the failure of suppliers, subcontractors or consortium partne

Continued pressures relating to global supply chain constraints, inflationary or tariff-related impacts on component parts and raw materials, higher overhead costs as a percentage of revenue, higher interest expense, and labor shortages have resulted, and could continue to result in, economic weakness and uncertainty, which could result in: • capital spending constraints for customers and, as a result, reduced demand for our product and service offerings, including reduced or delayed investments in data center, cloud and artificial intelligence and other high-density compute infrastructure; •

We also utilize a robust network of channel partners, distributors, IT resellers, and value-added retailers.

We rely, in part, on independent sales representatives, distributors, resellers, and original equipment manufacturers for the distribution of our products and services, some of whom operate on an exclusive basis.

We primarily serve customers across three main end markets: (1) data centers (including hyperscale/cloud, colocation, neocloud and enterprise), (2) communication networks and (3) commercial and industrial applications.