Nvidia Says Two Mystery Customers Accounted For 39% Of Q2 Revenue

Nearly 40% of Nvidia’s 2nd 4th gross came from conscionable 2 customers, according to a filing pinch nan Securities and Exchange Commission.

On Wednesday, Nvidia reported grounds revenue of $46.7 cardinal during nan 4th that ended connected July 27 — a 56% year-over-year summation mostly driven by nan AI information halfway boom. However, consequent reporting highlighted really overmuch that maturation seems to beryllium coming from conscionable a fistful of customers.

Specifically, Nvidia said that a azygous customer represented 23% of full Q2 revenue, while income to different customer represented 16% of Q2 revenue. The filing does not place either of these customers, only referring to them arsenic “Customer A” and “Customer B.”

During nan first half of nan fiscal year, Nvidia says Customer A and Customer B accounted for 20% and 15% of full revenue, respectively. Four different customers accounted for 14%, 11%, different 11%, and 10% of Q2 revenue, Nvidia said.

In its filing, nan institution says these are each “direct” customers — specified arsenic original instrumentality manufacturers (OEMs), strategy integrators, aliases distributors — who acquisition their chips straight from Nvidia, specified as. Indirect customers, specified arsenic unreality work providers and user net companies, acquisition Nvidia chips from these nonstop customers.

In different words, it sounds improbable that a large unreality supplier for illustration Microsoft, Oracle, Amazon, aliases Google mightiness secretly beryllium Customer A aliases Customer B — though those companies whitethorn beryllium indirectly responsible for that monolithic spending.

In fact, Nvidia’s Chief Financial Officer Nicole Kress said that “large unreality work providers” accounted for 50% of Nvidia’s information halfway revenue, which successful move represented 88% of nan company’s full revenue, according to CNBC.

What does this mean for Nvidia’s early prospects? Gimme Credit expert Dave Novosel told Fortune that while “concentration of gross among specified a mini group of customers does coming a important risk,” nan bully news is that “these customers person bountiful rate connected hand, make monolithic amounts of free rate flow, and are expected to walk lavishly connected information centers complete nan adjacent mates of years.”