US EditionTwo Mystery Clients Now Account for 39% of Nvidia Revenue
- Nvidia disclosed in its August 27 Q2 filing that two direct customers, Customer A and Customer B, accounted for 39% of its $46.74 billion revenue.
- This concentration reflects a significant increase from last year, when the top two customers made up only 14%, raising concerns about potential revenue risks.
- The company's dominant data center business, responsible for 88% of revenue, relies heavily on cloud providers and other large customers with continued high AI demand.
- CFO Colette Kress highlighted that at times, a large portion of the company’s revenue comes from a small group of clients, and this pattern is likely to persist.
- Analysts warn that Nvidia's growth could falter if these buyers reduce spending, making diversification vital amid AI sector volatility despite Nvidia's strong market position.
33 Articles
33 Articles
Nvidia Leans Heavily on Two Undisclosed Customers for Revenue Boom - NVIDIA (NASDAQ:NVDA)
Last week, Nvidia Corp. (NASDAQ:NVDA) reported second quarter earnings that exceeded analysts' forecasts. However, the focus shifted to two undisclosed customers who made up a substantial 39% of the company’s revenue. Referred to as “Customer A” and “Customer B” in Nvidia’s SEC filing, these clients were responsible for 23% and 16% of Nvidia’s Q2 revenue, respectively. This marks a significant rise from the prior year, where they accounted for 1…
Nvidia News: If a company gets a large part of its revenue from just a few clients, then a debate starts about its business growth and something similar is happening with Nvidia. In the second quarter, it got 39% revenue from just two customers. Know who these two customers are and what does the company have to say? - Nvidia top two mystery customers made up 39 percent of the chipmaker's Q2 revenue
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