Nvidia’s top two mystery customers made up 39% of the chipmaker’s Q2 revenue

Nvidia disclosed in its latest financial filing that just two customers made up 39% of its total revenue in the July quarter, intensifying concerns over the company’s heavy reliance on a small number of buyers amid its rapid growth.

According to the company’s second-quarter filing with the U.S. Securities and Exchange Commission (SEC), “Customer A” contributed 23% of total revenue, while “Customer B” represented 16%. This marks a sharp increase from the same period last year, when the top two customers accounted for 14% and 11% of Nvidia’s sales.

The revelation has sparked debate among analysts and investors about whether Nvidia’s soaring revenue is primarily driven by a handful of large cloud service providers, such as Microsoft, Amazon, Google, and Oracle.

Cloud Providers Dominate Data Center Revenue

Nvidia’s Chief Financial Officer Colette Kress confirmed that large cloud service providers generated about 50% of the company’s data center revenue in the quarter. This figure is significant, as the data center segment represented 88% of Nvidia’s overall revenue.

In its filing, Nvidia acknowledged the risks of this concentration:

“We have experienced periods where we receive a significant amount of our revenue from a limited number of customers, and this trend may continue.”

Wall Street has been closely monitoring cloud providers’ capital expenditure commitments as a key driver of Nvidia’s future growth. Analysts, however, are cautious. HSBC’s Frank Lee wrote in a Thursday note that earnings upside may be limited without clearer visibility into 2026 cloud capex expectations, maintaining a “hold” rating on the stock.

Mystery Surrounding Nvidia’s Top Buyers

While speculation points toward hyperscale cloud companies, Nvidia has not disclosed the identities of Customer A and Customer B, and a company representative declined to comment further.

Nvidia distinguishes between its direct customers and indirect customers:

• Direct customers purchase chips to integrate into systems or circuit boards, which are then sold to cloud providers, enterprises, or end-users. These direct buyers often include original equipment manufacturers (OEMs) like Dell, original design manufacturers (ODMs) like Quanta or Foxconn, or distributors.
• Indirect customers are typically cloud providers, internet companies, or enterprises that purchase complete systems from Nvidia’s direct customers.

The filing further complicated the picture by noting that two indirect customers also accounted for more than 10% of Nvidia’s total revenue, buying primarily through Customers A and B. Adding another layer of intrigue, Nvidia revealed that an “AI research and development company” contributed a “meaningful” portion of revenue via both direct and indirect channels.

Expanding Demand for AI Systems

Despite concerns about revenue concentration, Nvidia maintains that demand for its AI systems remains exceptionally strong across a broad spectrum of customers. These include not only cloud providers but also enterprises, “neoclouds” (smaller AI-focused providers), and foreign governments.

The company projects $20 billion in revenue this year from “sovereign AI” initiatives, where governments are investing in national-scale AI infrastructure.

Nvidia’s Long-Term AI Forecast

On the earnings call, CEO Jensen Huang projected that the global buildout of AI infrastructure could reach $3 to $4 trillion by the end of the decade. Nvidia expects to capture a significant share of that market, estimating that its chips—including GPUs and complementary processors—could account for up to 70% of the cost of a $50 billion AI data center.

Huang pointed to massive spending commitments from hyperscalers as a key driver:

“The capex of just the top four hyperscalers has doubled in two years as the AI revolution went into full steam.”

He emphasized that new categories of customers—enterprises, emerging cloud providers, and international buyers—are increasingly joining the AI infrastructure race, further fueling Nvidia’s long-term outlook.