Almost 40% of the revenue of the second quarter of Nvidia came from just two customers, according to a deposit with the Securities and Exchange Commission.
On Wednesday, the Chipmaker reported a record revenue of $ 46.7 billion during the quarter ending on July 27-increased by 56% on a yearly basis, he was largely led by the explosion of the AI data center. However, the subsequent report emphasized how much this growth seems to come from a handful of customers.
Specifically, Nvidia said that only one customer represented 23% of the total Q2 revenue, while sales to another customer represented 16% of Q2 revenue. The deposit does not specify any of these customers, referring only to them as “customer A” and “Customer B.”
In the first half of the year, Nvidia says that Customer A and Customer B represented 20% and 15% of total revenue, respectively. Four other customers represented 14%, 11%, 11%and 10%of Q2 revenue, the company says.
In its testimony, the company says they are all “direct” customers – such as original equipment manufacturers (OEMs), system integers or distributors – who buy their chips directly from Nvidia. Indirect customers, such as cloud service providers and consumer internet companies, buy NVIDIA brands from these immediate customers.
In other words, it sounds unlikely a large cloud provider such as Microsoft, Oracle, Amazon or Google be a secret customer A or B Customer B – although these companies may be indirectly responsible for these huge costs.
In fact, Nvidia Nicole Kress chief financial director said that “big cloud service providers” represented 50% of NVIDIA Data Center revenuewhich in turn represented 88% of the company’s total revenue, according to CNBC.
TechCrunch event
Francisco
|
27-29 October 2025
What does this mean for the future prospects of Nvidia? Gimme Credit Analyst Dave Novosel in Fortune That, while the “revenue of revenue between such a small group of customers poses a significant risk”, the good news is that “these customers have plenty of cash in hand, create huge quantities of free cash flow and are expected to go rich in data centers over the next two years”.
