Nvidia (NVDA) has revealed that two unnamed clients made up a striking 39% of its total revenue in Q2 2026. According to a recent SEC filing, “Customer A” accounted for 23% of sales, while “Customer B” represented 16%. Together, that equals about $18.2 billion out of the company’s $46.7 billion in revenue for the period.
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This level of concentration has grown rapidly, and along with it, the risks associated with a concentrated revenue stream. In the same quarter last year, the top two clients accounted for 25% of sales. The new numbers have drawn more attention to the narrow base that supports much of Nvidia’s recent surge. In the meantime, NVDA shares have declined by almost 4% since the company’s latest earnings report last Wednesday.
Who Are These Customers?
The identities of the two clients remain a mystery. Nvidia described them as “direct customers,” which means they buy chips to build systems or circuit boards that are later sold to cloud providers or enterprises. Direct customers can include original equipment makers like Dell Technologies (DELL) or contract firms like Foxconn (HNHPF). They are not necessarily the same companies that end up running the chips inside data centers.
By contrast, “indirect customers” are the large cloud platforms such as Microsoft (MSFT), Amazon (AMZN), Alphabet’s Google (GOOG), and Meta Platforms (META). Nvidia said that two of these indirect clients each accounted for more than 10% of its total revenue. However, those sales often flowed through the two direct clients rather than through Nvidia itself.
Risk Tied to Big Buyers
This setup creates both promise and risk. On the one hand, Nvidia is riding a huge demand for AI gear from hyperscale cloud platforms and new buyers such as foreign governments. The company guided for $54 billion in revenue for the current quarter, showing that demand is still strong. On the other hand, a heavy reliance on just a few buyers means that shifts in orders or spending plans could have a sharp effect on results.
Chief Financial Officer Colette Kress said that large cloud service providers made up about 50% of Nvidia’s data center revenue in the quarter. Data center sales were 88% of the company’s overall total. Chief Executive Jensen Huang also added that he sees $3 trillion to $4 trillion in global spend on AI systems by the end of the decade.
Still, analysts note that the dependence on a small set of buyers is a key factor to watch. For now, the identity of Customer A and Customer B remains unknown, leaving investors to weigh both the opportunity and the risk tied to Nvidia’s concentration.
Is Nvidia a Good Stock to Buy?
Following the earnings report, Wall Street analysts reaffirmed their bullish stance on Nvidia shares. In total, 34 out of 38 analysts now rate the stock a Buy, giving Nvidia a Strong Buy consensus. The average NVDA stock price target is $211.97, implying an upside of 21.70% from the current level.
