#NVIDIAConference NVIDIA

KEY RISKS. (Brief Analysis)

1) CYCLICAL DEMAND for AI and GAMING: Growth significantly depends on the adoption of enterprise AI and the demand for GPUs for gaming. Variations in data center spending or consumer markets can affect revenues.

2) COMPETITION and SUBSTITUTION: AMD, Intel, and possible alternative solutions (specific ASICs, cloud solutions) can pressure prices and market share.

3) SUPPLY CHAIN and CHIP COSTS: Disruptions in semiconductor supplies, component shortages, and volatility in silicon prices and retail can impact margins and delivery times.

4) REGULATION and INTERNATIONAL TRADE: Geopolitical tensions, export restrictions, and controls on AI technologies can limit sales in certain countries or segments.

5) DEPENDENCE on KEY SOFTWARE: CUDA and associated ecosystem (NGC, development tools) are differentiators; any compatibility break or changes in business models could erode competitive advantages.

6) MACROECONOMIC RISKS: inflation, interest rates, and recessions can reduce spending on technology and large-scale AI projects.

7) TECHNOLOGICAL and SECURITY RISK: Rapid innovation requires ongoing investment; security failures or bugs in libraries can damage reputation and sales.