Nvidia news: The July quarter results for veteran chip company Nvidia were bang. The second quarter of the current financial year 2026 (February 2025-January 2026), in May-July 2025, its revenue rose 56% to $ 4.67 thousand crore on an annual basis. However, the special thing is that 39% of this revenue has been received from only two customers. This has increased the concern of the company’s concentration of clients, that is, a large part of the revenue has increased from a few clients. The special thing is that the share of revenue from its top two customers has increased.
Who are these clients?
Through exchange filing, NVDia has revealed in the second quarter business results that a customer ie ‘Customer A’ stake in its total revenue, and the stake of the other customer B ‘, ie’ Customer B ‘, was 16%. Its two largest customers in the same quarter last year had 14% and 11% stake in the company’s revenue. The company releases its top customers’ information on a quarterly basis, but the revealed that has been revealed this week has waged a debate whether Nvidia’s rapid growth is only due to some big cloud providers like Microsoft, Amazon, Google and Oracle?
However, it is not necessary that the Customer A and Customer B Cloud Providers are in the July quarter and the company has also refused to reveal their identity. However, the company has said so much that both its direct and indirect are customers and customers A and Customers B are directly as customers.
Direct customers, the direct customers, are not the end users of the chip of Nvidia, rather they are companies that buy chips and make the entire system or circuit board, which they later sell to data centers, cloud providers and end users. Such as Foxconn, Quanta and Dell etc. Talking about indirect customers, ie indirect customers, it has Quude Service Providers, Internet companies and enterprises who buy systems from NVDia’s direct customers. Nvidia says that it can only guess revenue from these customers based on the purchase orders and internal sales data. Nvidia has revealed that its two indirect customers made more than 10% part in the total revenue, which mainly buy systems through ‘Customer A’ and ‘Customer B’.
What to say of Nvidia?
On the one hand, there has been a debate over a big stake in the revenue of a few customers, but Nvidia says that the company has seen a large number of times when it used to get a large part of the revenue from customers and this trend could continue. Nvidia’s Finance Chief Colette Kress says that large companies providing cloud service had about 50% stake in the data center. This is quite important because according to the July quarter data, the data center business holds an 88% stake in Nvidia’s overall revenue.