Nvidia Corp. disclosed that just two customers accounted for a substantial share of its record-breaking second-quarter results, underscoring both the company’s heavy reliance on a few buyers and the outsized demand for its chips powering the artificial intelligence boom.
In a filing with the Securities and Exchange Commission (SEC), the chipmaker revealed that one customer contributed 23% of total revenue in the quarter ended July 27, while another generated 16%. Together, these two unnamed clients represented 39% of Nvidia’s revenue for the period.
The company’s Q2 results were remarkable: $46.7 billion in revenue, up 56% year-over-year, driven overwhelmingly by the surge in AI data center demand. But the disclosure highlights just how concentrated that growth has become.
Who Are “Customer A” and “Customer B”?
The filing does not identify the two top buyers, referring to them only as “Customer A” and “Customer B.” Nvidia clarified that these entities are “direct” customers — such as original equipment manufacturers (OEMs), distributors, or system integrators — who buy chips directly from the company.
That means major cloud providers like Microsoft, Amazon, Google, or Oracle are unlikely to be the direct sources of the revenue. Instead, they probably purchase Nvidia’s GPUs through these intermediaries.
Across the first half of the fiscal year, Customer A and Customer B represented 20% and 15% of Nvidia’s total sales, respectively. In addition, four other customers accounted for 14%, 11%, 11%, and 10% of Q2 revenue, showing how a relatively small group of clients dominate the company’s business.
Data Centers Dominate Nvidia’s Business
Nvidia’s Chief Financial Officer Colette Kress told CNBC that “large cloud service providers” collectively made up 50% of the company’s data center revenue. Data centers, in turn, contributed 88% of Nvidia’s total revenue in the quarter — a figure that underscores the centrality of AI infrastructure to the company’s meteoric rise.
Risk and Opportunity Ahead
Analysts say the customer concentration cuts both ways. Dave Novosel, an analyst at Gimme Credit, told Fortune that while “reliance on such a small group of customers presents a meaningful risk,” the upside is that these same buyers are among the wealthiest in the industry.
“These customers have abundant cash reserves, generate huge amounts of free cash flow, and are expected to spend heavily on data centers over the next several years,” Novosel said.
For Nvidia, the question is whether this reliance becomes a long-term vulnerability — or a sign that a handful of hyperscale customers will continue to bankroll its unprecedented growth.
