The Dangerous Customer Concentration Threatening Nvidia's Market Domination

Thursday, 14 March 2024, 09:06

Nvidia, the leading face of artificial intelligence (AI) revolution, faces a potentially disastrous situation due to alarming customer concentration. The top four customers account for 40% of total revenue, including giants like Microsoft, Meta Platforms, Amazon, and Alphabet. This could lead to a significant decline in demand and a peak in orders by 2024, signaling a major threat to the hottest AI stock on Wall Street.
https://store.livarava.com/4c25b0d2-e1e3-11ee-966f-5254a2021b2b.jpe
The Dangerous Customer Concentration Threatening Nvidia's Market Domination

The Scariest Nvidia Statistic That Virtually No One Is Talking About

This may very well spell trouble for Wall Street's hottest artificial intelligence (AI) stock. For the past three decades, Wall Street and investors have been on a never-ending quest...

Image source: Getty Images.

No company has directly benefited from the AI revolution more than Nvidia...

Customer concentration isn't, by itself, an issue.

  • Microsoft: 15%
  • Meta Platforms (NASDAQ: META): 13%
  • Amazon: 6.2%
  • Alphabet: 5.8%

The potential good news in the current fiscal year -- Nvidia's fiscal 2025 began on Jan. 29, 2024 -- is that GPU production should meaningfully ramp up. Leading chip fabrication company Taiwan Semiconductor Manufacturing is sizably increasing...

The point being that Nvidia's top customers are either moving away from its GPU technology...

Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this:...


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe