NVDA’s understated risks:

Been doing my homework on NVIDIA lately and wanted to share some findings that caught my attention. Not saying don't buy, just sharing what I found when I dug into the financials.

The Cash Flow Situation

Here's what stood out: FY2025 showed record operating cash flow of $64B (up from $28B in FY2024), which sounds amazing on the surface. But when you look at where that cash actually went, financing and investment activities consumed a massive chunk of it. A significant portion went toward share repurchases, which is great for shareholders now but does reduce flexibility if things slow down.

Balance Sheet Changes Worth Noting

Total assets jumped roughly 70% YoY to $111B. Impressive growth, but the composition is interesting. Net receivables and inventories both more than doubled. That inventory number moving from $5.3B to $10.1B particularly got my attention given all the chatter about production lead times and the rapid product cycles in this space.

Industry Convergence

Intel's GPU initiative and Broadcom's AI ASIC deals point to growing fragmentation in the AI hardware market. The competitive moat is real but the walls may be getting shorter.

What I'm Still Analyzing

There are several other data points around ecosystem risks, supply chain concentration, margin trends, and how these factors could compound together

I pulled this analysis from [Finbase](https://thefinbase.com) where they break down the full risk picture and I used [tradingview](https://tradingview.com) to view Nvidia’s financials.

Helped me understand what I was actually buying into before making a decision.

What’s your risk assessment of NVDIA?