Nvidia posted exceptional quarterly results with revenue of $44.1 billion, up 12% from the previous quarter and 69% year over year. However, current stock price assumes strong growth and margins, which may not be sustainable due to customer concentration and competition risks. Valuation is high, setting a high bar for future performance.

Annualized revenue of $176 billion and free cash flow of over $100 billion set a high bar for Nvidia, especially in a cyclical industry. With a PE ratio of 57, investors are assuming sustained high margins and demand. Concerns include customer concentration and competition threat, making the stock less appealing at its current price.

Investors considering Nvidia should weigh the risks of valuation and tough comparisons, as well as the company’s business-specific risks like customer concentration and competition. Despite strong growth, the stock’s premium valuation leaves little room for error, making it less attractive compared to other investment opportunities.

Before investing in Nvidia, consider the risks associated with valuation, tough comparisons, customer concentration, and competition. The stock’s high price and expectations may not leave much room for growth, making it less appealing compared to other investments. For long-term success, investors should carefully evaluate the risks before buying Nvidia stock.

Read more at Nasdaq: Here’s Why I’m Not Buying the Dip in Nvidia’s Stock