According to a case filed by the US Stock Exchange Commission, nearly 2 % of Nvidia’s revenue in the second quarter is only from two customers.
On Wednesday, the company reported that in the quarter of July, which ended on July 6, it achieved a $ 1.5 billion revenue record, which grew by 5 % compared to the same period last year and was largely influenced by the boom in artificial ielligence -related data ceers. However, additional reports have shown that a large part of this growth depends on a small number of customers.
More precisely, Nvidia announced that only one customer accoued for 2 % of the total second trimester, while selling to another customer was about 2 % of the same income. In the documes provided, the ideity of these two customers is not specified and only referred to as Customer A and Customer B.
In the first half of the curre fiscal year, Nvidia announced that customer A and Customer B have made up to 2 % and 2 % of the company’s total revenue, respectively. Also, the other four customers accou for 2 %, 2 %, 2 % and 2 % of the second quarter’s revenue.
The company explained in its case that all of these customers are “direct”, such as companies such as manufacturers and distributors who buy chips directly from Nvidia. In corast, indirect customers, such as cloud service providers and consumer iernet companies, provide Nvidia chips from these customers.
In other words, the possibility of one of the major cloud service providers such as Microsoft, Oracle, Amazon or Google is the same customer A or B, although these companies may indirectly play a key role in this huge volume of purchase. Nicole Crus, chief financial officer of Nvidia, said large cloud service providers accou for 5 % of Nvidia’s data ceers revenue, accouing for 2 % of the company’s total revenue.
What does this mean for the future of Nvidia? Gimme Credit analyst Dave Noosel told Fortune that although “conceration of revenue among a very limited group can take significa risk, the positive thing is that these customers have huge cash reserves, produce extraordinary free cash flow and are expected to invest in the next few years.”
