Nvidia has become the most important company in the world. His problem is that he has all the eggs in the same basket

In Nvidia everything goes on wheels, but Not even enough for Wall Street. The latest quarterly results report has once again demonstrated Eun Eun Exceptional Power, but be careful. The most important company in the world –by stock marketat least – has an Achilles heel.

A dangerous concentration of customers. He Official document With the financial results, it refers to a “risk of concentration” of the great clients of Nvidia. The situation is really worrying, because Six customers They accumulate 85% of all income from the company:

• 10,750 million dollars – Customer A (23% of total ingreoss)
• 7,480 million dollars – Customer B (16%)
• 6,540 million dollars – Customer C (14%)
• 5,140 million dollars – Customer D (11%)
• 5,140 million dollars – Customer E (11%)
• 4,670 million dollars – Customer F (10%)

The problem goes more, no less. If we only look at the two most important customers, A is responsible for 23% of Nvidia and B revenues of 16%: 39% of income therefore come from only two clients. A year ago the two largest Nvidia clients were responsible for 14% and 11% of income, 25% in total.

These data raise an inevitable question: who is who in that client cast. And the answer is not simple.

Direct customers … Nvidia makes a distinction between those clients to whom he refers to the document, and that are divided into two large groups, the first is that of direct customers, which are not end users of their chips, but companies that buy the chips and that mounted them in complete systems or on plates that then sell to data centers, infrastructure suppliers in the cloud or final cloud. Among the examples, they indicate In CNBCwould be Foxconn, Quanta or Dell.

… and indirect customers. This is where those companies would enter that we are all thinking and use these chips – which they buy from direct customers – in Your gigantic data centers. Microsoft, Openai, Meta, Google, Tesla/Xai and Meta – and even Oracle – are clear candidates, but again, it is impossible to know for sure who is on that list of great buyers.

But the two most important are direct. What they do indicate in Nvidia is that customer A and B are direct customers, so they are not theoretically none of those great technological ones. But those definitions of Nvidia are somewhat diffuse, and the company states that some direct customers buy chips to create systems for their own use, so Any of the Big Tech I could enter that definition. To curl the curl, Nvidia said that two of its indirect clients each of them were responsible for 10% of their total income, but above all through the purchase of systems from customers A and B.

OpenAI in the pools. In Nvidia they talked about “an AI research and development company” contributed with a “significant” amount of income both through direct and indirect customers. Here are more candidates, but one of the strongest would be Openai, especially now that he is working In the Stargate project.

But the situation is dangerous. Be as it may, depending on both so few clients is delicate and creates a dangerous dependency chain. Thus, Nvidia depends on intermediaries that in turn They depend on a handful of technological giants. The company’s destination is in the hands of two buyers who represent almost 40% of their business, but the risk is not only for Nvidia, but for the entire technological ecosystem that depends on their chips.

There are not only companies, there are countries buying gpus. Another of the curious data of this report is the one that tells us about how Some foreign governments They are also buying chips massively. In fact, the company expects to enter 20,000 million dollars in these “Sovereign” projects with countries that try to create their own models and artificial intelligence infrastructure.

Image | Sharon Waldron edited with Google Gemini

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