36% of Nvidia's $35 Billion in Q3 Revenue Came From Just 3 Mystery Customers

Core Viewpoint - Nvidia's growth potential is heavily reliant on a small number of key customers, which poses a risk to its sales growth if these customers reduce their AI spending [3][10][14] Group 1: Market Position and Demand - Nvidia is the leading supplier of GPUs for data centers, with demand for AI development chips significantly outpacing supply [1] - The company has experienced incredible pricing power, resulting in over $3 trillion added to its market value in the last two years [2] - Nvidia generated a record $35.1 billion in total revenue during its fiscal 2025 third quarter, a 94% increase from the previous year, with $30.8 billion coming from the data center segment [8] Group 2: Customer Concentration Risk - More than one-third of Nvidia's total revenue in the third quarter came from just three customers, each accounting for 12% of total revenue [3][8] - In the previous quarter, four customers accounted for 46% of total revenue, indicating a slight decrease in revenue concentration [8] - If any of the top customers reduce their spending, Nvidia could face significant revenue losses that would be difficult to replace [10] Group 3: Customer Spending and Future Outlook - Major customers like Microsoft, Amazon, and Oracle are the largest buyers of Nvidia's GPUs, with Microsoft being the top buyer of the new Blackwell GB200 [11] - These companies are projected to spend a combined $300 billion on AI infrastructure in 2025, indicating a strong sales pipeline for Nvidia [13] - However, the long-term sustainability of such high spending rates is uncertain, as these companies are also developing their own chips to reduce costs [14][15]