Is This One Number From Nvidia a Red Flag for Investors?

Nvidia (NASDAQ: NVDA) has wowed investors over the past few years with its earnings growth and its share performance. This happened as the company shifted focus from the gaming industry to a position central to the development of today's most talked-about technology: artificial intelligence (AI).

Nvidia makes graphics processing units (GPUs) that power crucial AI tasks like training and inference, as well as a broad array of AI products and services. The company's expertise has helped it win 80% of the AI chip market and increase revenue and net income by triple digits in recent quarters.

All of this is fantastic, and investors have rewarded the company by piling into the shares, driving them up 2,900% over the past five years. But amid all of this excitement, one particular number could present a risk for the company and its investors. Should it be seen as a red flag and a reason to sell the stock? Let's find out.

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Source Fool.com