"Nvidia surpassed analyst expectations when it reported earnings this week, but it also revealed the influence of its two biggest customers has grown. In a filing with the Securities and Exchange Commission, the chipmaker disclosed two anonymous customers together made up 39% of its revenue for the second quarter, an increase from the same period last year. Nvidia's second-quarter earnings narrowly beat analyst expectations, but the company also revealed the growing influence of two of its biggest customers who, together, accounted for 39% of its revenue."
"Two anonymous customers, identified in a filing as "Customer A" and "Customer B," made up 23% and 16% of the company's Q2 revenue, respectively, according to Nvidia's most recent quarterly filing with the SEC. In the same quarter last year, buyers identified as "Customer A" and "Customer B" made up just 14% and 11%, respectively. Nvidia's stock was the hottest of 2024 and is up about 30% year-to-date, but its customer concentration raises questions about vulnerabilities."
Nvidia narrowly beat analyst expectations in Q2 while revealing rising customer concentration, with two anonymous buyers accounting for 39% of revenue. Those buyers, identified as "Customer A" and "Customer B", contributed 23% and 16% of Q2 revenue versus 14% and 11% a year earlier. The company's stock is up roughly 30% year-to-date, but dependence on a few large customers creates vulnerability if buying patterns shift. The CFO said half of data-center revenue relies on cloud providers. Nvidia controls over 90% of the AI GPU market, while some cloud providers, including Google and Amazon, pursue alternatives and in-house hardware.
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