NVIDIA (NVDA) risk factors, 2025 10-K

Risks Related to Our Industry and Markets

1. 01Our accelerated computing platforms experience rapid changes in technology, customer requirements, competitive products, and industry standards
2. 02Competition could adversely impact our market share and financial results

Risks Related to Demand, Supply, and Manufacturing

1. 03Long manufacturing lead times and uncertain supply and component availability, combined with a failure to estimate customer demand accurately, has led and could lead to mismatches between supply and demand
2. 04Dependency on third-party suppliers and their technology to manufacture, assemble, test, or package our products reduces our control over product quantity and quality, manufacturing yields, and product delivery schedules and could harm our business
3. 05Defects in our products have caused and could cause us to incur significant expenses to remediate, which can damage our reputation and cause us to lose market share

Risks Related to Our Global Operating Business

1. 06Adverse economic conditions may harm our business
2. 07International sales and operations are a significant part of our business, which exposes us to risks that could harm our business
3. 08Product, system security, and data protection incidents or breaches, as well as cyber-attacks, could disrupt our operations, reduce our expected revenue, increase our expenses, and significantly harm our business and reputation
4. 09Business disruptions could harm our operations, lead to a decline in revenue and increase our costs
5. 10Climate change may have a long-term impact on our business
6. 11We may not be able to realize the potential benefits of business investments or acquisitions, and we may not be able to successfully integrate acquired companies, which could hurt our ability to grow our business, develop new products or sell our products
7. 12We receive a significant amount of our revenue from a limited number of partners and distributors and we have a concentration of sales to customers who purchase directly or indirectly from us, and our revenue could be adversely affected if we lose or are prevented from selling to any of these customers
8. 13If we are unable to attract, retain and motivate our executives and key employees, our business may be harmed
9. 14Our business is dependent upon the proper functioning of our business processes and information systems and modification or interruption of such systems may disrupt our business and internal controls
10. 15Our operating results have in the past fluctuated and may in the future fluctuate, and if our operating results are below the expectations of securities analysts or investors, our stock price could decline

Risks Related to Regulatory, Legal, Our Stock and Other Matters

1. 16We are subject to complex laws, rules, regulations, and political and other actions, including restrictions on the export of our products, which may adversely impact our business
2. 17The increasing focus on the risks and strategic importance of AI technologies has resulted in regulatory restrictions that target products and services capable of enabling or facilitating AI and may in the future result in additional restrictions impacting some or all of our product and service offerings
3. 18Over the past three years, we have been subject to a series of shifting and expanding export control restrictions, impacting our ability to serve customers outside the United States
4. 19Unless a license exception is available, the worldwide licensing requirements will apply to the following NVIDIA products, and any others we develop that meet the characteristics of 3A090.a or 4A090.a, including but not limited to: A100, A800, H100, H200, H800, B100, B200, GB200, L4, L40S, and RTX 6000 Ada
5. 20The AI Diffusion IFR would increase our and our customers’ costs of doing business, creating compliance challenges and risks, and impact our supply and distribution chains, which will be subject to new compliance burdens and related extraterritorial regulatory obligations
6. 21Increased scrutiny from shareholders, regulators and others regarding our corporate sustainability practices could result in additional costs or risks and adversely impact our reputation and willingness of customers and suppliers to do business with us
7. 22Issues relating to the responsible use of our technologies, including AI in our offerings, may result in reputational or financial harm and liability
8. 23Actions to adequately protect our IP rights could result in substantial costs to us and our ability to compete could be harmed if we are unsuccessful or if we are prohibited from making or selling our products
9. 24cause us to incur significant costs to respond to, defend, and resolve such claims, and they may also divert the efforts and attention of management and technical personnel
10. 25We are subject to stringent and changing data privacy and security laws, rules, regulations and other obligations. These areas could damage our reputation, deter current and potential customers, affect our product design, or result in legal or regulatory proceedings and liability
11. 26We may have exposure to additional tax liabilities and our operating results may be adversely impacted by changes in tax laws, higher than expected tax rates and other tax-related factors
12. 27Our business is exposed to the burden and risks associated with litigation, investigations and regulatory proceedings
13. 28Delaware law and our certificate of incorporation, bylaws and agreement with Microsoft could delay or prevent a change in control