Nvidia has disclosed that almost 40 per cent of its revenue comes from just two customers, even as skepticism continues to grow around the massive scale of AI spending.
While GPU sales to one Nvidia customer accounted for 23 per cent of its total Q2 FY2026 revenue, another customer represented 16 per cent of the total Q2 revenue, the AI chip giant said in a filing with the US Securities and Exchange Commission (SEC) dated August 27.
The four-trillion dollar company did not disclose the identities of the two customers, only referring to them as Customer A and Customer B.
“For the first half of fiscal year 2026, sales to one direct customer, Customer A, represented 20% of total revenue; and sales to a second direct customer, Customer B, represented 15% of total revenue, respectively, both of which were attributable to the Compute & Networking segment,” the filing read.
Four other customers accounted for 14 per cent, 11 per cent, another 11 per cent, and 10 per cent of Q2 revenue, Nvidia further said.
These figures underline that Nvidia appears to be heavily dependent on sales from a small group of customers. It comes days after the company beat analysts’ expectations and reported blockbuster financial results for Q2 FY2026, with $46.7 billion revenue recorded over the quarter that ended on July 27. The boom in AI investments and data centres is said to have driven Nvidia’s 56 per cent growth in revenue from the year-ago period.
However, investors are also increasingly worried about an AI bubble that has been propping up the stock market and the broader economy, and could soon burst amid mounting political pressure on big tech companies that are driving the AI investment frenzy.
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OpenAI CEO Sam Altman also believes that the AI market bubble is real. “When bubbles happen, smart people get overexcited about a kernel of truth. Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes,” Altman recently said.
According to an analyst for Gimme Credit, “[Nvidia’s] concentration of revenue among such a small group of customers does present a significant risk.” But the good news is that “these customers have bountiful cash on hand, generate massive amounts of free cash flow, and are expected to spend lavishly on data centers over the next couple of years,” he was quoted as saying by Fortune.
Who is Customer A, Customer B?
As per its filing, Nvidia’s two clients accounting for a majority of its revenue could be original equipment manufacturers (OEMs), system integrators, or distributors who directly purchase chips from the company.
These ‘direct’ customers then supply chips to ‘indirect’ customers such as cloud service providers and consumer internet companies. This means that Microsoft, Amazon, Meta, Google, Oracle, and others are not likely to be Customer A or Customer B but they are still indirectly responsible for the massive AI spending and surging growth of Nvidia.
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Large cloud service providers like Microsoft and Google are estimated to make up 50 per cent of Nvidia’s data centre business, which accounts for 88 per cent of the company’s total revenue, as per Nicole Kress, Nvidia’s chief financial officer.
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