Nvidia’s Supply Chain- Part 2

Expert analysis from

Tick By Tick

Kyle Mair

Director of Partnership at The AI Report

September 16, 2025

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Welcome back to the two-part series where I dive into Nvidia’s supply chain. Last week we covered; manufacturing (TSM), equipment (ASML & AMAT) and memory (MU). This week the focus will be on assembly and infrastructure. Here’s what you need to know.

The Assembly and Testing Network

Advanced Semiconductor Engineering (ASX)- ASE, Amkor handle the final assembly and testing of Nvidia's chips after they leave TSMC's fabrication facilities. These companies take the raw silicon wafers and transform them into the finished products that data centers install.

Amkor Technology (AMKR)- Amkor specializes in advanced packaging technologies that allow multiple chips to work together as a single unit, exactly what Nvidia needs for its most powerful AI systems.

The Infrastructure Play

Vertiv Holdings (VRT) Vertiv Holdings designs and manufactures the cooling systems and power infrastructure that keep Nvidia's chips running in data centers. As AI chips become more powerful, they generate more heat and require more electricity—creating sustained demand for Vertiv's solutions.

Why This Matters for Your Portfolio

Most investors who want AI exposure simply buy Nvidia or broad technology ETFs. But this approach misses several key opportunities:

Diversified Risk: Supply chain companies often have multiple revenue streams beyond Nvidia, providing more stable cash flows during market volatility.

Lower Valuations: While Nvidia trades at premium multiples reflecting its AI leadership, many suppliers trade at more reasonable valuations despite benefiting from the same underlying trends.

Strategic Positioning: Some suppliers, like ASML and TSMC, hold quasi-monopoly positions in their respective markets, creating durable competitive advantages that extend beyond the current AI cycle.

Different Risk Profiles: TSMC and ASML face geopolitical risks around Taiwan and China export restrictions, while companies like Micron and Vertiv have more domestic exposure and different regulatory considerations.

The Bottom Line

Nvidia's success requires an intricate web of specialized suppliers, each playing an irreplaceable role in bringing AI chips from design to deployment. By understanding these relationships, investors can access the AI growth story through multiple angles.