Eggs, basket: Just 2 customers drive 39% of Nvidia’s record $46.7B quarterly sales

Nvidia disclosed that just two customers accounted for 39% of its record-breaking $46.7 billion second-quarter revenue, highlighting the chip giant’s heavy dependence on a narrow customer base. The revelation underscores the concentration risk facing the AI chip leader, even as demand for its data center hardware continues to surge.

What you should know: Nvidia’s customer concentration extends beyond the top two buyers, creating significant revenue dependency on a small group.

• One customer alone represented 23% of Q2 revenue, while another accounted for 16%.
• Four additional customers each contributed between 10-14% of quarterly revenue.
• For the first half of fiscal 2026, the top two customers contributed 20% and 15% of total revenue, respectively.

The big picture: These major customers are intermediaries in Nvidia’s supply chain rather than the end users driving AI demand.

• Nvidia clarified that direct customers include “add-in board manufacturers, distributors, ODMs, OEMs, and system integrators.”
• The actual end users—cloud service providers, enterprises, and consumer internet companies—purchase through these intermediaries.
• This structure means Nvidia’s revenue concentration reflects distribution partnerships rather than dependence on specific AI companies.

International market dynamics: Overseas sales continue to represent a significant portion of Nvidia’s business despite ongoing geopolitical tensions.

• Revenue from customers outside the United States accounted for 50% of Q2 revenue and 51% for the first half of fiscal 2026.
• Singapore alone represented 22% of Q2 revenue and 21% for the first half.
• These figures compare to 57% and 53% international revenue for the same periods in fiscal 2025.

What they’re saying: CEO Jensen Huang expressed optimism about potential Chinese market opportunities despite current restrictions.

• Huang noted there’s a “real possibility” that Nvidia’s advanced Blackwell processors could be sold in China.
• He estimated China’s AI market could expand by 50% next year, representing a “$50 billion opportunity in 2025.”
• The comments came as Huang pressed U.S. officials to allow American chipmakers greater access to the Chinese market.

Why this matters: The customer concentration data reveals both the strength and vulnerability of Nvidia’s position in the AI boom, as heavy reliance on a few key distributors could amplify any disruptions to its supply chain or customer relationships.