Nvidia has revealed that almost 40% of its second-quarter revenue came from just two customers, raising questions about its growing reliance on a small group of buyers.
In a filing with the Securities and Exchange Commission, the chipmaker said one customer accounted for 23% of total revenue during the quarter that ended on 27 July, while another made up 16%. Nvidia did not name the firms, identifying them only as “Customer A” and “Customer B.”
The disclosure comes after Nvidia reported record quarterly revenue of $46.7 billion, a 56% increase compared to the same period last year. The company’s strong growth is being driven by demand for its chips in artificial intelligence data centers.
Over the first half of the fiscal year, Customer A and Customer B represented 20% and 15% of total revenue, respectively. Nvidia also said four other customers each contributed between 10% and 14% of second-quarter revenue.
The company clarified that these buyers are direct customers — such as original equipment manufacturers, distributors, or system integrators — rather than large cloud providers like Amazon, Google, Microsoft, or Oracle. These cloud companies typically purchase Nvidia chips indirectly through partners.
Even so, Nvidia’s Chief Financial Officer Nicole Kress noted that “large cloud service providers” represented half of Nvidia’s data center revenue. Data center sales made up 88% of the company’s total revenue in the quarter.
Analysts say the concentration of revenue poses risks but also reflects a market expected to expand further. Dave Novosel of Gimme Credit told Fortune that while dependence on a small group of customers is significant, those firms are well-funded and expected to continue heavy investment in data centers.
