Nvidia’s revenue is becoming increasingly concentrated among a few gigantic customers
More than 34% of the company’s annual revenue came from cryptic “Customers A, B, and C.”
Buried in the bowels of Nvidia’s annual report from this afternoon is an interesting factoid: more than one-third of its whopping $130.5 billion of revenue in the latest year came from just three customers.
For the year that ended in January, Nvidia said “Customers, A, B, and C” — so secretive! — accounted for 12%, 11%, and 11%, respectively, of all the company’s revenue. Just one year ago, Customer B accounted for 13% of all revenue, but Customers A and C both accounted for less than 10% apiece. In fiscal 2023, no single customer accounted for 10% or more of revenue.
The upshot here is that 34% of Nvidia’s revenue came from three sources, meaning it’s getting more concentrated among presumably gigantic tech companies. Is that good, bad, or neutral? Hey, we just report. You decide.
I guess we can’t definitively say who those gigantic customers are that could be writing checks that collectively add up to more than $44 billion in a single year, but based on some recent boasts around AI capex spending... it’s a decent bet that they may rhyme with Shmycrosoft, Glamazon, and Jetta.
