40 % of Nvidia’s income come from two mysterious customers and it is not a good thing

NVIDIA recorded $ 46.7 billion in revenue in the second quarter, an increase of 56 % over a year which is explained by the high increase in demand in data centers dedicated to AI. Except that the data shows that this spectacular growth depends on a few buyers barely.

Nvidia is dependent on these two mysterious customers

The two customers who represent almost 40 % of the quarterly turnover of Nvidia are appointed under the names “Customer a” And “Customer B” in official documents. Their identity remains secret. But that’s not all since four other customers weigh very heavy in the accounts of the semiconductor manufacturer with 14, 11, 11 and 10 % of sales respectively. To put it simply: six companies concentrate the overwhelming majority of the company’s income.

If their identity is unknown, these buyers are direct customers: manufacturers of original equipment (OEM), system integrators or distributors who buy chips directly from Nvidia.

In general, major companies in the cloud such as Microsoft, Oracle, Amazon or Google are in the category of indirect customers. These companies get the Nvidia components, including direct intermediaries who could therefore hide behind these enormous expenses.

Nidia Director of Nvidia, confirmed to CNBC that large cloud suppliers represent 50 % of income from the data center segment. Proof that this segment is important, it represents 88 % of the total turnover of the company.

Except that this situation of concentration has a risk, as Dave Novosel, analyst at Gimme Credit explains. “The concentration of income among a limited group of customers presents a significant risk”he declared to Fortune.

But the expert tempers somewhat: “These customers have abundant cash, generate massive cash flows and should spend generously spending in data centers in the coming years.”

And for good reason, AI represents the technology of tomorrow and Nvidia, now the most valued company in the world, is the market leader for flea. For society, this concentration is both a great opportunity, but also a … vulnerability.