Nvidia's Two Anonymous Customers Account for Nearly 40% of Q2 Revenue

Nvidia's quarterly revenue was boosted by two anonymous customers who accounted for 39% of its revenue, up from 25% last year. The chipmaker's data-center business, which makes up half of its revenue, relies heavily on cloud providers. While some analysts worry about the concentration of revenue among a few customers, others believe demand for AI progress remains high and Nvidia's chips are the best in the industry.

Nvidia Corporation (NVDA) reported robust earnings for the second quarter of 2025, with revenue surpassing analyst expectations. The company's quarterly revenue was boosted by two anonymous customers who accounted for 39% of its total revenue, up from 25% in the same period last year [1]. This significant increase in revenue from these two customers underscores their growing influence on the chipmaker's financial performance.

Nvidia's data-center business, which constitutes half of its total revenue, heavily relies on cloud providers. According to the company's recent SEC filing, half of the revenue generated by this segment comes from large cloud providers. While this reliance on a few key customers presents potential risks, analysts like Dave Novosel from Gimme Credit note that these customers have substantial financial resources and are expected to continue investing in data centers over the next couple of years [1].

The concentration of revenue among a small number of customers raises concerns about potential vulnerabilities. If these customers alter their purchasing habits, it could significantly impact Nvidia's revenue. However, the demand for AI progress remains high, and Nvidia's chips are widely regarded as the best in the industry, providing a buffer against these risks [1].

Nvidia's stock has been performing well, with shares up about 30% year to date. The company's chief financial officer, Colette Kress, highlighted the "sovereign AI" initiatives, which are expected to generate $20 billion this year. Despite these positive indicators, Nvidia's earnings report also revealed cautious optimism regarding its China business. The company left Chinese revenue out of its third-quarter guidance due to regulatory risks, which could impact its future performance [3].

In conclusion, Nvidia's strong performance in the second quarter was driven by the significant contributions of two anonymous customers. While the concentration of revenue among a few customers presents risks, the company's position as a leader in the AI GPU market and its robust demand outlook provide a solid foundation for future growth.

References:
[1] https://fortune.com/2025/08/29/nvidia-revenue-anonymous-customers-chips-ai-china/
[2] https://finance.yahoo.com/m/cff602e9-085a-3dbe-ab02-4acaef41cf7c/nvidia-can-hit-1-trillion-in.html
[3] https://www.tradingview.com/news/forexlive:3f38d3523094b:0-nvidia-dips-on-cautious-outlook-as-cloud-spending-slows-and-china-uncertainty-lingers/