When the word “semiconductor” is mentioned, it’s nearly impossible not to think of Nvidia (NASDAQ: NVDA) — and for good reason. Over the last five years, the company has grown its revenue and free cash flow by nearly 900% and 800%, respectively. With that level of growth, it’s no wonder industry analysts estimate that Nvidia holds at least 80% market share in the artificial intelligence (AI) chip realm.
By all accounts, Nvidia looks unstoppable. However, what goes up must eventually come down, right?
While analyzing Nvidia’s second-quarter earnings report, I stumbled across a metric that required a second look because I couldn’t believe what I saw. Specifically, I’m beginning to realize that Nvidia’s customer concentration trends might suggest the company’s growth could come to a screeching halt — and I think many investors could be caught off guard.
Let’s take a look at Nvidia’s…
