In the fiscal quarter ending July 27, 2025, Nvidia reported a record-breaking revenue of $46.7 billion, marking a 56% increase compared to the same period last year. This substantial growth is largely attributed to the escalating demand for AI-driven data center solutions.
A recent filing with the Securities and Exchange Commission (SEC) reveals that nearly 40% of this quarter’s revenue originated from just two customers. Specifically, one customer, referred to as Customer A, accounted for 23% of the total revenue, while another, Customer B, contributed 16%. The identities of these customers remain undisclosed in the filing.
Over the first half of the fiscal year, Customer A and Customer B represented 20% and 15% of Nvidia’s total revenue, respectively. Additionally, four other customers contributed 14%, 11%, another 11%, and 10% of the Q2 revenue.
Nvidia classifies these entities as direct customers, encompassing original equipment manufacturers (OEMs), system integrators, or distributors who procure chips directly from the company. In contrast, indirect customers, such as cloud service providers and consumer internet companies, acquire Nvidia’s products through these direct channels.
This distinction suggests that major cloud providers like Microsoft, Oracle, Amazon, or Google are unlikely to be Customer A or B. However, these tech giants may still play a significant role in the demand driving these substantial purchases. Notably, Nvidia’s Chief Financial Officer, Nicole Kress, indicated that large cloud service providers accounted for 50% of the company’s data center revenue, which itself constituted 88% of the total revenue for the quarter.
The concentration of revenue among a limited number of customers presents both opportunities and risks. Analyst Dave Novosel from Gimme Credit commented that while such dependency poses a significant risk, the financial robustness of these customers mitigates concerns. He noted that these clients possess substantial cash reserves, generate significant free cash flow, and are anticipated to invest heavily in data centers in the coming years.
Nvidia’s impressive financial performance underscores its pivotal role in the AI and data center sectors. As the company continues to cater to the growing needs of its major clients, it remains to be seen how this revenue concentration will influence its strategic direction and market positioning in the future.
