As Wall Street and investors celebrate Nvidia Corp.’s (NASDAQ:NVDA) stellar fourth-quarter results and anticipate continued outperformance, a fund manager raised a potential risk on Thursday regarding the AI giant’s overreliance on the rest of the Magnificent 7 companies.
Nvidia’s Dependency on Mag 7: Short-seller Jim Chanos, known for his Enron collapse prediction, commented on a post by X user @InvestRoiss about the sustainability of GPU spending by the Magnificent 7 companies.
The social media user speculated that the Nvidia customer contributing 19% to total revenue, procuring chips directly and indirectly, might be Meta Platforms. He estimated that $13.2 billion of Nvidia’s total revenue could have come from Meta, approximately 48.5% of the Mark Zuckerberg-led company’s total 2023 capex of $27.2 billion.
“Are we seriously projecting ...