In its filing, the company says these are all “direct” customers - such as original equipment manufacturers (OEMs), systems integrators, or distributors who purchase their chips directly from Nvidia. Indirect customers, such as cloud service providers and consumer internet companies, buy Nvidia chips from those direct customers, reported TechCrunch.
In other words, it is not probable that a big cloud provider such as Microsoft, Amazon, Oracle, or Google might secretly be one of the two customers, even though those companies may be indirectly responsible for that massive spending.
In fact, Nvidia’s chief Financial Officer, Nicole Kress, said that “large cloud service providers” accounted for 50% of Nvidia’s data center revenue, which in turn represented 88% of the company’s total revenue, according to CNBC.
This means that Nvidia’s future prospects? Gimme Credit analyst Dave Novosel reported for Fortune that while “concentration of revenue among such a small group of customers does present a significant risk,” the good news is that “these customers have bountiful cash on hand, generate massive amounts of free cash flow, and are expected to spend lavishly on data centers over the next couple of years.”
