More Than a Quarter of Nvidia's Revenue Now Comes From Customers Based in Taiwan. Should Investors Be Worried?

Nvidia's latest Form 10-Q filing reveals significant geographic and customer concentration, with $27.0 billion—or roughly 28% of its total fiscal second-quarter revenue of $96.2 billion—billed to customers headquartered in Taiwan. This represents a dramatic increase from $8.9 billion (19% of revenue) in the prior-year period. However, this shift primarily reflects the geographic location of contract manufacturers and system integrators, such as Foxconn, rather than actual end-market demand, as complete server racks route through Taiwanese assemblers before reaching global data center operators. The disclosures underscore persistent concentration risk for the semiconductor giant. A single unnamed direct customer accounted for 16% (around $15 billion) of Nvidia's total quarterly revenue. Furthermore, Taiwan plays an essential dual role in Nvidia's supply chain, serving as the home base for wafer production through Taiwan Semiconductor Manufacturing (TSMC) and handling downstream assembly. While Nvidia projects fiscal third-quarter revenue to reach $108.0 billion, heavy operational reliance on Taiwan elevates exposure to regional and geopolitical disruption risks.