NVIDIA Reveals Nearly 40% of Revenue Comes From Just Two Customers

SANTA CLARA, California – Chipmaking giant NVIDIA has disclosed in its latest financial filings that nearly 40% of its total revenue is derived from just two major customers, underscoring the company’s heavy reliance on a small client base.

The Disclosure

According to the report, the two customers – whose names have not been officially disclosed but are believed to be large cloud service providers – account for a significant share of NVIDIA’s sales in its data center division. This business segment has become the company’s fastest-growing unit amid skyrocketing demand for artificial intelligence (AI) hardware.

Market Implications

Industry analysts warn that while NVIDIA’s dominance in AI chips remains unmatched, such a high dependency on a limited number of clients could pose risks if contracts are reduced or competitors gain ground.

On the other hand, investors see the disclosure as a sign of how crucial NVIDIA’s technology has become for leading global cloud companies.

Looking Ahead

NVIDIA executives emphasized that the company is working to broaden its customer base and diversify revenue streams. However, the disclosure highlights both the strength and vulnerability of a company riding the AI boom.