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two Nvidia The company disclosed in its finances that customers accounted for 39% of NVIDIA revenue in the July quarter Register On Wednesday, concerns arise about the focus of chipmaker customer clusters.
According to the company’s second-quarter filing with the Securities and Exchange Commission, “Customer A” accounts for 23% of total revenue and “Customer B” accounts for 16% of total revenue.
According to the document, this is higher than the same quarter a year ago, with NVIDIA’s top two customers accounting for 14% and 11% of sales.
The company regularly releases information about its top customers based on quarterly quarters, but this week’s disclosures are sparking whether Nvidia’s explosive growth is by a handful of large cloud providers, e.g. Microsoft,,,,, Amazon,,,,, Google and Oracle.
“Big cloud service providers” account for about 50% of the company’s data center revenue, NVIDIA head of finance Colette Kress said in a statement Wednesday. This is important because the data center business accounted for 88% of NVIDIA’s overall revenue in the second quarter.
“We have experienced a time limit, we have earned a lot of revenue from a limited number of customers, and this trend is likely to continue,” Nvidia wrote in the filing.
Analysts are increasingly seeking those cloud capital expenditure commitments to simulate the future growth of NVIDIA.
“Unless we increase clarity in terms of the rise expected by CAPEX in 2026 (cloud service provider) we will gain more room for further earnings upside or limited space for the share price catalyst in the near future,” HSBC analyst Frank Lee wrote in a note on Thursday, rating the stock as Hold.
But Nvidia’s customers A and customer B are not necessarily cloud providers. It’s a bit of a mystery, and NVIDIA representatives refuse to share customer A and customer identities.
NVIDIA said in its submission that it has both “direct customers” and “indirect customers.” Client A and Client B are listed as “direct customers”.
Direct customers are not end users of NVIDIA chips. They are the companies that buy chips to build complete systems or circuit boards and then sell them to data centers, cloud providers and end users. Some of these direct customers are original design manufacturers or original equipment manufacturers such as Foxconn or Quanta. Others are distributors or system integrators such as Dell.
Meanwhile, indirect customers include cloud service providers, internet companies and enterprises, which usually purchase systems from direct customers of NVIDIA. NVIDIA said it can only estimate indirect customer revenue based on purchase orders and internal sales data.
Decrypting whether these cloud providers are NVIDIA’s mysterious customers is partly because chip manufacturers have room to swing in their definitions of direct and indirect customers.
For example, NVIDIA wrote in the file that some direct customers buy chips to build systems for their own use.
In addition, NVIDIA noted that its two indirect customers accounted for more than 10% of their total revenue, mainly through customers A and B purchasing systems.
NVIDIA further facilitates the mystery of all this, he said a “AI R&D company” contributes “meaningful” revenue through direct and indirect customers.
NVIDIA told investors on Wednesday that demand for corporate AI systems remains high, not only in cloud providers, but also among other types of customers, including enterprises to purchase systems for AI and “Neoclouds”, which are serving the largest service providers to focus more on AI. NVIDIA also listed foreign governments, saying it will generate $20 billion in revenue this year for “sovereign AI”. Cres told analysts on a revenue call that all of these product categories contributed to NVIDIA’s revenue growth.
NVIDIA CEO Jensen Huang also said the company received a new forecast of $3 to $4 trillion at the end of the decade. It said it could cost $50 billion to 70% of the total cost of AI’s data centers, not just its graphics processing units, but also for other chips.
Huang told investors that this is a smart goal for the next five years, as how much large scores are being spent and promised to spend $600 billion. He also said new customers such as enterprises or overseas cloud providers are joining the company.
“As you know, with the full driving force of the AI revolution, senior large-scale capital expenditures in only the top four have doubled,” Huang said.
