🚨 NVDA WORLD DOMINATION MODE: ACTIVATED

Today's theme: How NVIDIA became the chip god of the AI era... without actually making its own chips.

Author

Jason Paloma
August 24, 2025 • Estimated Reading Time: 5 minutes

😎 Market Vibes

🚨 NVDA WORLD DOMINATION MODE: ACTIVATED

Today's theme: How NVIDIA became the chip god of the AI era... without actually making its own chips.

🧠 TL;DR:

  • NVIDIA designs the chips.

  • TSMC (Taiwan Semi) makes the chips.

  • Jensen gets richer.

  • People keep buying calls.

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Don’t let this chance slip before NVIDIA's story unfolds.

💡 THE VIBES EXPLAINER: NVIDIA's Fabless Flex

NVIDIA doesn't own a single chip factory. Not one.

Instead, they hand off their blueprints (hello, H100, B100, B200, H20 and maybe soon B30A) to Taiwan Semiconductor Manufacturing Company ($TSMC), who does all the actual dirty work. That's right - the most valuable semiconductor company in the West doesn't manufacture semiconductors.

It's like being the best-selling chef in the world who doesn't even own a kitchen.

🏗️ So... Who Does the Heavy Lifting?

👷 TSMC: The real MVP. They manufacture NVIDIA's bleeding-edge GPUs on their 5nm and 4nm nodes. Without TSMC, there's no AI boom. Period.

🛠️ ASML: Dutch legends making the EUV lithography machines TSMC needs to etch those absurdly small circuits. One machine costs $200M+.

🌎 Supply Chain Circus: Silicon from Japan. Tools from the Netherlands. Lenses from Germany. All coordinated like a trillion-dollar ballet, just so your ChatGPT can flirt with you.

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🤑 FUN FACT: NVDA'S MARGINS ARE CRAZY

Despite not owning factories, NVIDIA's gross margins are >70% on many of these chips. That's higher than Apple or Tesla…

They outsource the hard part and still print billions.

🔮 WHAT COULD BREAK THIS?

  1. TSMC Risk: China and Taiwan geopolitical tensions are no joke. If TSMC goes offline, the entire AI economy collapses.

  2. Supply Chain Bottlenecks: ASML can only make ~55 EUV machines a year. You can't speedrun physics.

  3. In-house Competition: Meta, Google, Amazon, and Microsoft are all trying to design their own AI chips. But beating NVIDIA? Good luck.

🧨 FINAL THOUGHT:

NVIDIA is the drug lord of the AI era.

They don't grow the product. They don't ship it. But they own the recipe, and everyone is hooked.

Now ask yourself: how long can Jensen Huang keep printing money... without ever touching a fab?

✌️ Thanks for vibing with us.

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