Two anonymous customers, identified in a filing as “Customer A” and “Customer B,” made up 23% and 16% of the company’s Q2 revenue, respectively, according to Nvidia’s most recent quarterly filing with the SEC. In the same quarter last year, buyers identified as “Customer A” and “Customer B” made up just 14% and 11%, respectively.
Nvidia’s stock was the hottest of 2024 and is up about 30% year to date, but its customer concentration raises questions about vulnerabilities. If these two mystery customers change their buying habits, for instance, it could cost the chipmaker greatly.
Still, at least one analyst downplayed the influence of Nvidia’s mystery customers. Although its buyers’ spending could change, the demand for AI progress remains high, and Nvidia’s chips are the best in the industry, said Dave Novosel, senior investment analyst for telecommunications, media, and technology at Gimme Credit.
“The concentration of revenue among such a small group of customers does present a significant risk,” Novosel told Fortune
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