AI and Tech: Understanding Nvidia's Revenue Dependency on Four Major Customers

Wednesday, 4 September 2024, 22:21

AI and tech investors should worry as Nvidia's revenue shows a concerning dependency on just four customers. Nearly half of its Q2 revenue, equating to about $13.8 billion, came from these key parties. As reported by a tech analyst from D.A. Davidson, this concentration poses risks in the coming years.
Business Insider
AI and Tech: Understanding Nvidia's Revenue Dependency on Four Major Customers

AI and Tech: Nvidia's Revenue Dependency on Four Major Customers

Nvidia notched $30 billion in revenue for the second quarter, beating many analysts' estimates for the period. Nearly half of that came from four customers, according to an SEC filing from the company. That should keep investors on alert for the next year or two, Gil Luria, a tech analyst who covers Nvidia for D.A. Davidson, told Business Insider.

Revenue Breakdown

According to the company filing, just four customers brought in 46% of Nvidia's total Q2 revenue—about $13.8 billion. The companies are kept anonymous in the filing. There's no disclosure law that requires Nvidia to reveal its clients' names, Luria noted. However, the customers are likely to include Microsoft, Meta, Amazon, and Google, as all four are known to be ramping up their GPU stockpiles to support aggressive AI initiatives.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe