Nvidia, the undisputed giant of AI chips, has delivered another blockbuster quarter, easily surpassing Wall Street’s lofty expectations on sales, revenue, and guidance. Yet despite the record-breaking performance, the company now faces an adversary that even its cutting-edge technology may struggle to outpace: the law of large numbers.

In its latest Q2 results (ending July 28), Nvidia reported strong growth but saw a brief dip in shares after data center sales fell slightly short of expectations. A closer look at its filings revealed a crucial detail—44% of revenue in its flagship data center business comes from just two hyperscaler clients, widely believed to be Microsoft and Meta. While reliance on a few major players carries risk, the real challenge for Nvidia investors is scale itself.

With a market valuation already exceeding $4.44 trillion—making it the most valuable U.S. company—Nvidia would need to double its market cap by 2032 to nearly $9 trillion to deliver just a 10% annual return. That translates to annual profit additions of $26 billion, a feat unmatched even by Microsoft or Alphabet in their strongest years.

CEO Jensen Huang’s bold vision projects global AI infrastructure spending could surge from $600 billion annually today to $3–$4 trillion by decade’s end. If accurate, Nvidia could maintain its dominance. But history shows that no monopoly lasts forever—competition will intensify, margins will be tested, and customer dependence must be reduced to sustain growth.

For investors, Nvidia remains a groundbreaking and highly profitable enterprise, yet the question looms: can even the world’s most dominant AI chipmaker keep compounding at the speed needed to defy financial gravity?