According to the most recent disclosure filed with the U.S. Securities and Exchange Commission, nearly two-fifths of Nvidia’s revenue in the second quarter of its fiscal year—precisely close to 40 percent—was derived from the purchases of only two individual clients. This revelation underscores just how heavily concentrated a substantial portion of Nvidia’s financial success has become, hinging on a remarkably small number of direct buyers of its products.
On Wednesday, the company underscored the scale of this success by announcing unprecedented quarterly revenue of $46.7 billion for the period ending July 27. This figure represents an extraordinary 56 percent increase compared to the same quarter a year earlier, with the overwhelming majority of that surge propelled by explosive demand within the artificial intelligence–driven data center sector. Yet, despite this extraordinary expansion, subsequent reporting quickly emphasized that growth on such a scale seems to hinge not on a wide and diversified customer base but rather on a very narrow group of dominant purchasers.
Within its official filing, Nvidia specified that one unnamed client—referred to solely as “Customer A”—was responsible for 23 percent of the company’s total revenue during the second quarter, while another unnamed client—called “Customer B”—contributed an additional 16 percent. Collectively, these two entities alone accounted for 39 percent of quarterly sales. Nvidia, however, declined to disclose their identities, offering no confirmation of which companies hold this outsized influence. Instead, the firm simply used these anonymized placeholders, leaving the larger industry to speculate.
The filing also provided figures for the broader fiscal year to date: across the first six months, Customer A has contributed approximately 20 percent of total revenue, while Customer B accounted for 15 percent. The rest of Nvidia’s top-line revenue still reflected the influence of other direct customers, though to a lesser degree. In the second quarter, four additional companies each represented notable shares of revenues—14 percent, 11 percent, another 11 percent, and 10 percent, respectively. These statistics reveal that while Customers A and B stand out, Nvidia’s revenue is also meaningfully concentrated among a small circle of large buyers.
Nvidia took care to clarify the nature of these major clients. Each of them is what the company describes as a “direct” customer, which, in industry terms, refers to entities such as original equipment manufacturers (OEMs), systems integrators, or distributors who purchase Nvidia’s graphics processing units straight from the company itself. In contrast, Nvidia also serves a wide array of “indirect” customers—such as global cloud infrastructure providers and large-scale consumer internet companies—who generally obtain Nvidia’s hardware from those very direct partners instead of through direct procurement. This distinction matters considerably when contemplating who the mystery customers might be.
Put simply, it would be implausible to assume that enormous cloud service providers—firms like Microsoft, Oracle, Amazon, or Google—occupy the roles of Customer A or B in terms of direct transactions. While those companies are certainly driving a significant share of Nvidia’s booming sales by purchasing data center chips, they are understood to obtain those products primarily through intermediaries. In this way, Nvidia’s largest recorded customers are likely intermediaries rather than household-name cloud companies themselves, although the ultimate demand originates from those very technology giants.
Adding to that context, Nvidia’s Chief Financial Officer, Nicole Kress, publicly explained that large-scale cloud service providers did in fact account for roughly half of Nvidia’s data center–related revenue. Considering that data center sales represented approximately 88 percent of the company’s total revenue in the quarter, this means that cloud companies are indirectly sustaining nearly the entirety of Nvidia’s current business momentum. This clarification highlights the unique interplay between direct and indirect purchasing relationships that defines modern semiconductor supply chains.
The real strategic question moving forward is what this unusually sharp revenue concentration means for Nvidia’s future outlook. Financial analyst Dave Novosel of Gimme Credit elaborated on the matter in remarks to Fortune. He cautioned that placing so much reliance on such a limited number of customers inherently carries a pronounced risk, because if even one of these critical clients were to reduce orders or face financial constraints, Nvidia’s bottom line could be immediately affected. Nevertheless, he also emphasized the optimistic counterpoint: these dominant customers are corporations with immense cash reserves, vast and consistent free cash flow, and a strong likelihood of sustaining or even escalating spending on advanced data centers in the coming years. In practical terms, their deep pockets and aggressive investment strategies in cutting-edge technologies could actually shield Nvidia from near-term volatility, despite the inherent risk of concentration.
Taken together, Nvidia’s disclosure presents a vivid snapshot of both opportunity and vulnerability. On one hand, the unparalleled demand for AI processing hardware has catapulted the company to record-breaking financial results. On the other, the fact that just a handful of customers wield such immense purchasing power underscores the delicate balance Nvidia must navigate between capitalizing on surging demand and guarding itself against overreliance on too few partners.
Sourse: https://techcrunch.com/2025/08/30/nvidia-says-two-mystery-customers-accounted-for-39-of-q2-revenue/
