<div id="readability-page-1"><div><div>Last week, Nvidia Corp. NVDA reported second quarter earnings that exceeded analysts' forecasts. However, the focus shifted to two undisclosed customers who made up a substantial 39% of the company’s revenue.Referred to as “Customer A” and “Customer B” in Nvidia’s SEC filing, these clients were responsible for 23% and 16% of Nvidia’s Q2 revenue, respectively. This marks a significant rise from the prior year, where they accounted for 14% and 11% respectively.Despite Nvidia’s stock emerging as the top performer in 2024 and witnessing a 30% surge year-to-date, the concentration of these customers presents potential risks. Any shift in the purchasing behavior of these two clients could have a significant impact on Nvidia, reports The Fortune. Last week Nvidia’s CFO, Colette Kress, also disclosed that half of the revenue from its largest segment, the data-center business, is dependent on cloud providers. Also Read: Nvidia, AMD See ‘Special Treatment’ From Trump As Chip Supply Chain Faces New DisruptionsWhile Nvidia holds over 90% of the AI GPU market, cloud providers such as Google and Amazon are considering alternatives to Nvidia chips.As per the outlet, Dave Novosel, a senior investment analyst at Gimme Credit, downplayed the risk, emphasizing that the demand for AI progress remains robust and Nvidia’s chips are industry leaders. He also pointed out that these customers have ample cash reserves and are projected to heavily invest in data centers in the upcoming years.Nvidia reported a Q2 revenue of $46.74 billion, a 56% increase from the same period last year, and a net income of $26.4 billion, a 59% year-over-year increase. The company attributed these figures to the continuous construction of AI data centers and the demand for its latest Blackwell chip.The significant reliance on two customers and the potential shift of cloud providers to alternatives pose a risk to Nvidia’s future performance. The company’s dominance in the AI GPU market and the continued demand for AI progress may offset these risks. However, the situation warrants close monitoring, as any significant changes could impact Nvidia’s revenue and market position.Read NextBillionaire Fund Manager Doubles Down on Nvidia and Key AI Stack PlayImage: Shutterstock/Shutterstock AI</div></div></div>

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Nvidia Corp. reported Q2 earnings exceeding forecasts, with two undisclosed customers contributing 39% of revenue. "Customer A" and "Customer B" accounted for 23% and 16% of Q2 revenue, up from 14% and 11% last year. Despite a 30% stock surge in 2024, reliance on these customers poses risks if purchasing behavior changes. Nvidia's Q2 revenue reached $46.74 billion, a 56% increase, driven by AI data center demand. Analysts remain optimistic about Nvidia's market position, but the situation requires monitoring due to potential shifts in cloud provider preferences.

- Nvidia Corp. reported Q2 earnings of $46.74 billion, exceeding forecasts, with a 56% year-over-year increase.  
- Two undisclosed customers accounted for 39% of revenue, raising concerns about potential risks if their purchasing behavior changes.  
- Despite these risks, Nvidia's dominance in the AI GPU market and strong demand for AI technology may mitigate future impacts on its performance.  

Nvidia Leans Heavily on Two Undisclosed Customers for Revenue Boom