From Nasdaq: 2025-06-17 05:37:00

Most AI models are trained and deployed in data centers filled with specialized GPUs. Nvidia dominates the market, with demand driving a surge in revenue and earnings. However, over half of Nvidia’s revenue comes from just four customers, posing a risk if one reduces spending. Identifying these top customers is crucial for assessing Nvidia’s future.

Nvidia’s revenue is heavily concentrated in its data center segment, with just four mystery customers accounting for 54% of its total revenue. Customer A alone spent around $7 billion in the first quarter, highlighting the risk of such dependency. While Nvidia doesn’t disclose customer names, public forecasts from tech giants like Amazon, Microsoft, Alphabet, and Meta Platforms provide insights into potential top clients.

Nvidia’s CEO predicts AI infrastructure spending could top $1 trillion annually by 2028, driven by increasing computing demands of new AI models. The company’s Blackwell and Blackwell Ultra GPU architectures cater to this demand, making chips like GB200 and GB300 highly sought after. Despite revenue concentration risks, Nvidia’s current valuation and growth prospects make it an attractive investment opportunity.

The Motley Fool’s analyst team identified the 10 best stocks to buy now, excluding Nvidia. Historical returns from previous recommendations demonstrate the potential for significant growth with the right investments. Consider joining Stock Advisor to access the latest top stock picks and benefit from their market-crushing performance compared to the S&P 500. Investors should weigh the risks and rewards before deciding to invest in Nvidia.



Read more at Nasdaq: 54% of Nvidia’s Q1 Revenue Came From 4 Mystery Customers — Who Could They Be?