Nvidia’s record-breaking $46.7 billion revenue in the second quarter was powered by the AI boom, but also heavily reliant on just two customers.
According to a new SEC filing, one customer represented 23% of Nvidia’s Q2 revenue and another accounted for 16%, together making up nearly 40% of the total. The company did not name them, referring only to “Customer A” and “Customer B.”
These were all direct customers, OEMs, system integrators, or distributors, rather than cloud giants like Microsoft, Google, Amazon, or Oracle, who typically buy Nvidia chips indirectly. Still, Nvidia CFO Nicole Kress said “large cloud service providers” made up 50% of data center sales, which represented 88% of overall revenue.
Related:Nvidia Posts $46.7B Revenue as AI Data Centre Sales Drive Record Growth
Analysts note the risk of such customer concentration, but also the upside: “These customers have bountiful cash on hand … and are expected to spend lavishly on data centers over the next couple of years,” said Dave Novosel of Gimme Credit.
