Nvidia's Q2 Revenue Heavily Concentrated: Two Unnamed Customers Account for 39%

Nvidia's latest financial disclosures have highlighted a significant concentration in its revenue streams, with two unnamed direct customers contributing 39% of its record $46.7 billion revenue in the second quarter ending July 27, 2025. This revelation, made in an SEC filing on August 28, 2025, underscores the chipmaker's increasing reliance on a limited number of major buyers, primarily within its booming data center segment. The company also indicated that 81% of its revenue originates from just six customers, as noted in a recent social media post by "High Yield Harry."

The filing specified that "Customer A" accounted for 23% of total revenue, while "Customer B" comprised 16%. This marks a substantial increase from the same period last year, when Nvidia's top two customers represented 14% and 11% of sales, respectively. The data center business, which includes sales of AI graphics processing units (GPUs), constituted a staggering 88% of Nvidia's overall revenue for the quarter, further emphasizing the shift in its business focus.

While Nvidia has not publicly identified these key customers, industry analysts widely speculate they are major hyperscale cloud providers such as Microsoft, Amazon Web Services, and Google Cloud. These tech giants are heavily investing in AI infrastructure, driving immense demand for Nvidia's advanced chips. Nvidia classifies these as "direct customers," which are typically original equipment manufacturers (OEMs), system integrators, or distributors who then sell to the ultimate end-users.

This high degree of customer concentration presents both opportunities and risks for Nvidia. On one hand, it reflects the extraordinary demand for its AI hardware and its dominant position in the market. On the other, it introduces vulnerability; if one or both of these large customers were to reduce orders, shift to in-house chip development, or face economic headwinds, Nvidia's financial performance could be significantly impacted.

Analysts, including Dave Novosel of Gimme Credit, acknowledge that while "the concentration of revenue among such a small group of customers does present a significant risk," these customers possess substantial financial resources and are expected to continue "spending lavishly on data centers over the next couple of years." Nvidia itself noted in its filing that it has experienced periods of revenue concentration before and that this trend may persist. The company is also working to diversify its revenue streams through expansion into enterprise AI, automotive, networking, and software platforms.