Nvidia’s financial dominance is increasingly concentrated, with a new SEC filing revealing that just two customers accounted for 39% of the company’s total revenue in the second quarter of 2025. This dependency highlights the massive influence a select few buyers hold over the chipmaker’s record-breaking $46.7 billion quarterly performance.
The Concentration of AI Spending
The chip giant reported a 56% year-over-year revenue surge for the quarter ending July 27, fueled largely by the relentless demand for AI data center hardware. Within this growth, two anonymous entities—labeled simply as “Customer A” and “Customer B”—contributed 23% and 16% of total revenue, respectively.
The trend is not limited to a single quarter. Throughout the first half of the fiscal year, these two customers were responsible for 20% and 15% of Nvidia’s total income. Furthermore, the company disclosed that four additional customers accounted for 14%, 11%, 11%, and 10% of Q2 revenue, underscoring a high level of buyer concentration.
Direct vs. Indirect Revenue Streams
Nvidia clarified that these figures refer exclusively to “direct” customers, such as original equipment manufacturers (OEMs), system integrators, and distributors. These entities purchase hardware directly from Nvidia, while indirect buyers—including major cloud service providers and consumer internet giants—typically source their chips through these intermediaries.
While the identities remain shielded, industry experts note that the distinction between direct and indirect buyers is critical. Although major cloud players like Microsoft, Oracle, Amazon, and Google may not be the direct buyers listed as “Customer A” or “B,” their massive infrastructure requirements are the primary engine behind the spending. According to CNBC, CFO Colette Kress confirmed that “large cloud service providers” accounted for 50% of Nvidia’s total data center revenue, which itself represents 88% of the company’s overall business.
Assessing Future Risks
The heavy reliance on a handful of buyers has prompted questions regarding the long-term stability of Nvidia’s growth. However, analysts maintain a cautiously optimistic outlook.
Gimme Credit analyst Dave Novosel told Fortune that while the current revenue concentration poses a “significant risk,” the profile of these customers mitigates some concern. These buyers are cash-rich entities with substantial free cash flow, and they are projected to continue aggressive data center investments over the coming years, potentially sustaining Nvidia’s current trajectory despite the lack of a diversified customer base.