By Trefis Team
Publication Date: 2025-11-24 10:00:00
In this photo illustration the Nvidia logo is shown on a mobile phone against the illustration of a stock market graph illustration displayed on a computer screen Nvidia reported third-quarter revenue of $57 billion – up 62 per cent year-on-year – November 20, 2025. (Photo by Dominika Zarzycka/NurPhoto via Getty Images)
NurPhoto via Getty Images
What is the primary risk in the AI surge that nearly no one is factoring in?
Nvidia (NASDAQ:NVDA) relies almost solely on a single foundry, TSMC, for its most cutting-edge and lucrative chips. These chips are mainly manufactured in Taiwan, a location highly susceptible to geopolitical issues.
What makes this so perilous?
Nvidia is currently valued at $4.3 trillion – having briefly reached about $5 trillion earlier this year – yet the H100, H200, and Blackwell products all depend on TSMC’s cutting-edge facilities in Taiwan. The island accounts for over 90% of the world’s advanced chips, and 2025 has seen a surge in Chinese military exercises, pressure, and instability — intensifying that single point of failure.
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Let that resonate: the entire AI surge hinges on one location on the map.
Isn’t this an issue for everyone, not just Nvidia?
Absolutely. AMD, Qualcomm, Broadcom, and nearly all fabless companies depend on the same supply…
