every token with admin keys has no desire to preserve your property rights and immutable protocols will not be accepting concentration risk this cycle ...

Concentration Risk & Revenue - The report identifies two types of concentration risk: weighting in key benchmark indexes and concentration of revenue driven by specific clients [1] - Concerns exist regarding revenue concentration, particularly with hyperscalers, with investors seeking return on investment and expressing unease about CapEx [2][4][5] - Nvidia's AI position is strong, but execution is key, with hyperscalers playing a dominant role in driving revenue [4] - Magnificent Seven companies account for approximately 40% of Nvidia's revenue, raising concerns about payback and return on investment for investors in those companies [4] Market Performance & Sentiment - Despite concerns, the Nasdaq finished August up for the fifth straight month, driven by the Magnificent Seven [5] - September is historically a weaker month for Wall Street, contributing to current market conditions [5] - Nvidia's year-to-date performance is up 25%, despite recent declines, highlighting the impact of concentration in revenue sources and the Magnificent Seven [7] - A rotation out of big tech is occurring, with financials, energy, and materials performing well in August [9] Fundamentals & Outlook - Fundamentals for Nvidia and technology as a whole remain solid, but execution is crucial [6][10] - Earnings expectations for Nvidia and big tech in the Magnificent Seven increased over the last two months [10] - Investors should anticipate volatility around concentrated names in major indexes due to stretched valuations [10]

Concentration Risk & Customer Base - Nvidia's 10Q revealed that 56% of its accounts receivables are from three customers, raising concerns about concentration risk [1] - The concentration may be structural or temporary, influenced by factors like sovereign AI projects and software optimization [4] - The diversification of Nvidia's customer base is crucial, especially as cloud providers potentially reach full capacity [7][8][9] Market Dynamics & Demand - Hyperscalers are currently aggregators of demand, giving customers access to chips, but this may not last [6] - Cloud providers account for roughly 50% of data center sales, indicating a broadening customer base [3] - Massive pent-up demand exists from sovereign AI projects waiting for GPUs [4] Financial Performance & Future Outlook - Blackwell revenue is hitting all customer categories [3] - Cloud providers may face shareholder scrutiny regarding return on investment as they continue to invest [8] - Nvidia needs to diversify its customer base eventually [7]