Nvidia (NASDAQ:NVDA) has taken the tech world by storm over the last year and a half. While OpenAI’s ChatGPT sparked the generative artificial intelligence (AI) boom, it’s Nvidia that has reaped the bulk of the spoils so far.
Shares of the graphics processing unit (GPU) superstar have surged 500% since the start of 2023 as sales and profits have soared. Nvidia’s products form the backbone of AI infrastructure and demand for them has been so strong that there has been a shortage of GPUs.
In its most recent earnings release said Tesla found that 35,000 of Nvidia’s H100 GPUs were installed in supercomputers. This was the latest sign that Nvidia’s hardware is synonymous with AI capability, because the more components a company has, the more AI training and AI inference it can do.
Given Nvidia’s value in the AI competition, it’s only natural to wonder who Nvidia’s biggest customer is.
Nvidia’s top customers
Nvidia does not disclose who its largest customer is. This is not surprising as this information would be valuable to competitors. However, in its most recent 10-K filing, the company said that one customer accounted for 13% of its revenue from the compute and networking segment and an indirect customer that purchases Nvidia products through integrators and distributors, including the aforementioned customer, accounted for 19 % represents % of company sales. This name also comes from the compute and networking segment.
It’s not entirely clear who this customer is, but we have a good idea who Nvidia’s biggest customer might be based on media reports and inferences.
Not surprisingly, big tech companies like it Amazon, Metaplatforms, MicrosoftAnd alphabet They are believed to be among Nvidia’s largest customers, accounting for around 40% of sales.
It’s also clear that AI startups like OpenAI and autonomous vehicle companies like Tesla are important customers of Nvidia. At this point, any company investing in AI is almost certainly an Nvidia customer.
While Nvidia’s customer concentration does bring some risk, especially as these big tech companies scale back spending, the bigger threat could be new competition AMD And Intel. If Nvidia can defend itself against this, the stock should continue to be a winner.
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Who are Nvidia’s biggest customers? was originally published by The Motley Fool