- Nvidia’s recent revelations highlight how concentrated its customer base is.
- The company said just two customers accounted for 24% of its revenue in the first quarter.
- UBS believes the biggest mystery shopper, accounting for 19% of revenue last year, is Microsoft.
Nvidia has a few mystery customers that make up a significant portion of its revenue base, according to new revelations.
In its 10-Q filing with the SEC earlier this week, Nvidia said a single direct customer accounted for 13% of its total revenue in the first quarter of its 2025 fiscal year, while a second direct customer represented 11% of its total turnover. .
On top of that, the AI chipmaker said it had two indirect customers that each accounted for 10% or more of its total revenue in the first quarter.
The concentration of revenue from just a handful of companies comes as large-cap technology companies rush to stock up on Nvidia’s H100 AI chips to expand their generative AI capabilities.
Meta Platforms, Tesla and Amazon all made comments on their recent earnings calls about increasing their capital spending this year, alluding to the fact that they are sourcing Nvidia’s H100 chip and the Blackwell chip that will be Coming soon.
And UBS estimates that Nvidia’s biggest customer is Microsoft.
In a note earlier this week, UBS analyst Timothy Arcuri made the connection and said that, based on previous disclosures from Nvidia, he estimates that Microsoft accounted for 19% of Nvidia’s total revenue. during its 2024 fiscal year and that Microsoft still remains its largest customer.
“It stands to reason that one of them could probably be MSFT again,” Arcuri said of Nvidia’s new revelations about customers that account for more than 10% of its revenue.
Microsoft has been rapidly expanding its AI capabilities as it develops its CoPilot product and continues its partnership with OpenAI.
According to Bloomberg supply chain data estimates, Arcuri is right on target with Microsoft being Nvidia’s largest customer.
Bloomberg data estimates that Microsoft accounts for 15% of Nvidia’s revenue, followed by Meta Platforms with 13% of revenue, Amazon with 6% of revenue, and Alphabet with about 6% of revenue.
businessinsider
