NVIDIA's Customer Concentration and Major Customers

TapTechNews June 3rd news, documents disclosed recently by chip giant NVIDIA show that there is a significant concentration in its customer structure, and a few companies contribute the majority of its revenue.

According to NVIDIA's quarterly report submitted to the US Securities and Exchange Commission (SEC), among NVIDIA's direct customers in the first quarter of fiscal year 2025, one contributed 13% of total revenue, and another contributed 11%. The company also disclosed two non-direct customers, each accounting for 10% or more of its total revenue.

This phenomenon of customer concentration is related to the rush of technology giants to snap up NVIDIA's H100 artificial intelligence chip, and these companies hope to use this chip to enhance their generative artificial intelligence capabilities. Meta, Tesla and Amazon have all recently indicated that they will increase capital expenditures, suggesting that they are stockpiling NVIDIA's H100 chip as well as the upcoming Blackwell chip.

Timothy Arcuri, an analyst at UBS, believes that NVIDIA's largest customer is likely to be Microsoft. Through analyzing NVIDIA's previous disclosure information, he pointed out that Microsoft accounted for 19% of NVIDIA's total revenue in fiscal year 2024 and remains its largest customer. Arcuri said, 'Logically, among these customers who account for more than 10% of NVIDIA's revenue, Microsoft is likely still included.'

TapTechNews noted that the estimation of Bloomberg's supply chain data is in line with Arcuri's analysis, showing that Microsoft is the largest customer of NVIDIA, accounting for 15% of its revenue, followed by MetaPlatforms (13%), Amazon (about 6%) and Alphabet (around 6%).