Nvidia says two mystery customers accounted for 39% of Q2 revenue | TechCrunch

Nearly 40% of NVIDIA’s second-quarter revenue came from just two customers submit with the Securities and Exchange Commission.

On Wednesday, chipmaker Reported record revenue In the quarter ending July 27, the price of $46.7 billion was $46.7 billion, a year-on-year increase of 56%, largely driven by the AI ​​data center boom. However, subsequent reports highlighted that this growth appears to be coming from only a few customers.

Specifically, NVIDIA said individual customers accounted for 23% of total Q2 revenue, while sales to another accounted for 16% of second-quarter revenue. The document has not identified these two clients, only known as “Customer A” and “Customer B”.

In the first half of the fiscal year, NVIDIA said that Client A and Client B accounted for 20% and 15% of total revenue, respectively. The company said the other four customers accounted for 14%, 11%, another 11% and 10% of second-quarter revenue.

These are “direct” customers, such as original equipment manufacturers (OEMs), system integrators or distributors – buying chips directly from Nvidia, the company said in its filing. Indirect customers, such as cloud service providers and consumer Internet companies, buy NVIDIA chips from these direct customers.

In other words, it sounds unlikely that large cloud providers like Microsoft, Oracle, Amazon, or Google may secretly become Customer A or Customer B – although these companies may be indirectly responsible for a large amount of spending.

In fact, NVIDIA Chief Financial Officer Nicole Kress said “large cloud service providers” 50% of NVIDIA data center revenueThis in turn accounts for 88% of the company’s total revenue, according to CNBC.

What does this mean for Nvidia’s future prospects? Gimme credit analyst Dave Novosel told Fortune While “the revenue concentration between this small group of customers does have significant risks,” the good news is “those customers have a lot of cash on hand, generating a lot of free cash flow and are expected to spend a lot on data centers in the coming years.”