Nvidia Revenue Surges from Taiwanese Customers

Nvidia's latest quarterly filing has revealed that more than a quarter of its revenue comes from customers based in Taiwan. The $27 billion figure represents 28% of Nvidia's total revenue for the fiscal second quarter, which ended on July 26.

This is up from $8.9 billion a year earlier and tripled in just one quarter, far surpassing the overall growth rate of the company. The United States remains the largest market for Nvidia, accounting for 62% of revenue, but Taiwan's share has increased significantly, from 19% to 28% in just one year.

Nvidia sorts its revenue by geography based on the headquarters location of its direct customers. While it's possible that some of this revenue may be related to Taiwanese demand for AI chips, it's more likely that much of it is due to the island's role as a hub for contract manufacturers and system builders who assemble and test Nvidia's products before shipping them to other parts of the world.

The concentration of revenue among just a few direct customers is another significant finding. One customer accounted for 16% of Nvidia's total revenue in the quarter, with two others representing 23% and 16% respectively a year earlier. This highlights the importance of Taiwan as a key player in Nvidia's supply chain.