Nvidia’s Q2 Revenue Heavily Concentrated in Two Mystery Customers
Nvidia’s Q2 Revenue Heavily Concentrated in Two Mystery Customers
Nvidia reported a record-breaking $46.7 billion in revenue for the second quarter of 2025, but a recent regulatory filing reveals that nearly 40% of that income came from just two unnamed customers.
Unprecedented Revenue Growth Driven by AI
Fueled by a booming demand for AI data center technology, Nvidia’s Q2 revenue soared 56% year-over-year. However, the company’s latest Securities and Exchange Commission (SEC) filing highlights a surprising level of customer concentration:
- Customer A: Accounted for 23% of Nvidia’s Q2 revenue.
- Customer B: Accounted for 16% of Q2 revenue.
These two customers, identified only as "Customer A" and "Customer B," represented 20% and 15% of Nvidia’s total revenue for the first half of the fiscal year, respectively.
Who Are the Mystery Customers?
Nvidia’s filing clarifies that these are "direct" customers—likely original equipment manufacturers (OEMs), system integrators, or distributors—who buy chips directly from Nvidia. Indirect customers such as major cloud service providers (Microsoft, Google, Amazon, Oracle) typically purchase Nvidia hardware through these direct channels. This means the true end-users of Nvidia’s products might be much broader than the top-line numbers suggest.
Broader Customer Base Still Significant
Beyond the top two, Nvidia reported that four more customers made up a notable share of Q2 revenue:
- 14%
- 11%
- 11%
- 10%
This underscores Nvidia’s strategic position at the heart of the AI and data center revolution, even as a handful of companies dominate its sales ledger.
AI Cloud Providers Drive Data Center Revenue
According to Nvidia’s Chief Financial Officer Nicole Kress, large cloud service providers accounted for 50% of Nvidia’s data center revenue, which itself comprised 88% of Nvidia’s total revenue for Q2 2025.
Risks and Outlook: Is Customer Concentration a Concern?
The outsized role of a few customers brings both opportunity and risk. As analyst Dave Novosel noted, "concentration of revenue among such a small group of customers does present a significant risk." However, these customers are typically well-capitalized, generate strong cash flow, and are expected to continue investing heavily in AI infrastructure over the coming years.
Key Takeaways for Businesses
- Nvidia’s explosive growth is largely driven by demand for AI chips in data centers.
- A few large customers can dramatically impact quarterly performance.
- Customer concentration is a double-edged sword: It accelerates growth but could pose risks if buying patterns change.
- Indirect sales through partners amplify Nvidia’s reach, making the company’s technology foundational to the AI ecosystem—even beyond its direct client list.
