Nvidia Reports Two Major Customers Drove 39% of Q2 Revenue

Nvidia's Revenue Concentration Highlights AI Boom Dependencies

The chipmaker's recent SEC filing reveals staggering customer concentration, with two unnamed clients accounting for 39% of Nvidia's record $46.7 billion Q2 revenue - marking a 56% annual increase fueled by surging AI infrastructure demand.

According to regulatory documents:

• A single customer ("Customer A") contributed 23% of total quarterly revenue
• Another buyer ("Customer B") represented 16% of Q2 sales
• Four additional direct customers accounted for 14%, 11%, 11%, and 10% respectively

Nvidia clarified these are direct purchasers - typically OEMs, system integrators or distributors - rather than cloud hyperscalers who procure chips through intermediaries. However, CFO Nicole Kress disclosed that cloud providers indirectly drove 50% of data center revenue, which itself comprised 88% of Nvidia's total business.

Strategic Implications

Financial analysts note this customer concentration creates potential vulnerability:

• Risk: Heavy dependence on few buyers exposes Nvidia to demand fluctuations
• Mitigation: Purchasers possess substantial financial resources and commitment to multi-year AI infrastructure expansion
• Market Outlook: Analysts anticipate sustained data center investment through 2026

Gimme Credit's Dave Novosel observes: "While concentration presents significant risk, these customers generate massive cash flows and show no signs of slowing data center investments."

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