Nvidia's $30 billion in second quarter revenue, with 46% stemming from four customers, raises red flags for investors given the unusual client concentration in a mega-cap company.
Gil Luria noted that it is 'highly unusual' for a company like Nvidia to rely on just a few clients for a significant portion of revenue, stating, 'None of the other mega caps even have one 10% customer.'
While Nvidia's revenue surpassed analyst estimates, the fact that nearly half comes from four clients suggests potential vulnerabilities in market dynamics and demand sustainability.
The anonymity of Nvidia's major clients means precise risks are hard to assess, though they are likely to include major tech companies ramping GPU stockpiles for AI pursuits.
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