Posted 2/29/2024, 10:02:00 AM
Nvidia's AI Dominance Threatened Long-Term by Customer Defections to Custom Chips
- Nvidia stock has surged over 200% in the past year to nearly $2 trillion valuation on its dominance of AI chip market
- But 6 big tech companies comprise over 50% of Nvidia's estimated revenue - high customer concentration
- These big customers are developing their own custom AI chips, which could threaten Nvidia long-term
- Analyst estimates and price targets for Nvidia are very bullish, but risk losing major customers
- Nvidia stock valuation prices in significant future growth that may not materialize if key customers defect