Nvidia Q2 FY2026: Nearly 40% of Revenue Comes from Just Two Mystery Customers
Published: August 31, 2025
Introduction
Nvidia has once again delivered staggering financial results for the second quarter of fiscal year 2026, yet a startling detail in its SEC filing has sparked investor concern: nearly 40% of its revenue came from just two anonymous direct customers. How does this level of concentration affect Nvidia’s stability, and what can it tell us about future growth dynamics?
Key Figures from Q2 FY2026
- Total revenue for Q2 FY2026: $46.7 billion, up 56% year-over-year and 6% from the prior quarter :contentReference[oaicite:0]{index=0}.
- Data center revenue: $41.1 billion, accounting for about 88% of total revenue :contentReference[oaicite:1]{index=1}.
- ‘Customer A’ accounted for 23% of total revenue (~$10.7B), while ‘Customer B’ made up 16% (~$7.5B) :contentReference[oaicite:2]{index=2}.
Exactly Who Are These “Mystery Customers”?
Nvidia’s filing clarifies that these unnamed entities are "direct customers"—such as OEMs, system integrators, ODMs, or distributors—who purchase Nvidia’s chips to build complete systems :contentReference[oaicite:3]{index=3}.
These direct customers may then sell to “indirect customers,” including cloud service providers, enterprises, neoclouds, and governments. Notably, Nvidia estimates that two indirect customers—primarily served via “Customer A” and “Customer B”—each account for more than 10% of total revenue :contentReference[oaicite:4]{index=4}.
Despite speculation, it is unlikely that large cloud names like Microsoft, Amazon, or Google are themselves “Customer A” or “Customer B,” though they may be indirect beneficiaries :contentReference[oaicite:5]{index=5}.
The mystery deepens as Nvidia only discloses names for customers contributing 10% or more, making identification difficult—but several analysts suggest the big hyperscalers are key downstream players :contentReference[oaicite:6]{index=6}.
Why It Matters: Customer Concentration Risks
Heavy revenue concentration in a few customers comes with both upside and risk:
upside
- These are likely deep-pocketed, high-capex players with ongoing demand for Nvidia’s AI infrastructure—ensuring strong short-term revenue visibility :contentReference[oaicite:7]{index=7}.
- Nvidia’s CFO confirms continuing high demand from large cloud providers and emerging neoclouds, strengthening the company’s position in AI systems :contentReference[oaicite:8]{index=8}.
downside
- If either of these major customers scales back unexpectedly, Nvidia could face a significant revenue drop.
- For instance, Customer A alone likely contributed over $10B to this quarter—an enormous share that few companies could replace swiftly :contentReference[oaicite:9]{index=9}.
- This kind of concentration is drawing scrutiny as a structural risk to Nvidia’s long-term resilience :contentReference[oaicite:10]{index=10}.
How Q2 Compares to Prior Quarters
In fiscal Q2 FY2025, Nvidia generated $30 billion in revenue, with just two customers accounting for 25% (Customer A at 14%, Customer B at 11%) of total income. Four mystery customers combined accounted for nearly 46% of revenue :contentReference[oaicite:11]{index=11}.
In contrast, for Q2 FY2026, Customer A and B’s combined share climbed to 39%, reflecting an increase in concentration despite the surge in absolute numbers :contentReference[oaicite:12]{index=12}.
What Analysts and Nvidia Are Saying
HSBC’s analyst Frank Lee notes that “without increased clarity on 2026 cloud provider capex, there’s limited room for further upside revisions” :contentReference[oaicite:13]{index=13}.
Meanwhile, Nvidia highlights that “large cloud service providers” account for ~50% of its data center revenue—underscoring the strategic importance of ongoing capex from hyperscalers :contentReference[oaicite:14]{index=14}.
Looking Ahead: What to Watch in Q3 FY2026
- Revenue guidance: Nvidia projects Q3 revenue of ~$54 billion (±2%), which is slightly ahead of expectations and may set a new record—if sustained :contentReference[oaicite:15]{index=15}.
- China exposure: Ongoing geopolitical restrictions may impact Chinese demand—particularly for the H20 chip—even though Nvidia anticipates $2–$5 billion from resumed sales if regulatory clarity emerges :contentReference[oaicite:16]{index=16}.
- Diversification: Watch whether Nvidia can broaden its client base—perhaps adding more enterprise customers or “neoclouds”—to reduce reliance on any single customer.
Summary Table: Customer Concentration Over Time
| Quarter | Total Revenue | Customer A | Customer B | Top 2 Share Total |
|---|---|---|---|---|
| Q2 FY2025 | $30B | 14% | 11% | 25% |
| Q2 FY2026 | $46.7B | 23% | 16% | 39% |
SEO-Focused FAQs
Q1: Why are Nvidia’s top two customers anonymized?
Under SEC rules, Nvidia only needs to disclose customers that account for 10% or more of revenue—but not their names. Hence, large buyers like OEMs, integrators, or distributors remain anonymous as “Customer A” and “Customer B.”
Q2: Does this reliance on two customers hurt Nvidia?
It poses risk: losing or seeing reduced orders from either could materially impact revenue. But if those customers remain engaged—and if Nvidia grows its base—it may offset the downside.
Q3: Who might “Customer A” and “Customer B” be?
While Nvidia hasn’t confirmed identities, likely candidates include major OEMs or systems vendors that serve hyperscale cloud players. The ultimate end users could be hyperscalers like Microsoft, Amazon, or Google.
Q4: How is Nvidia responding to this risk?
Nvidia is ramping Blackwell GPU production, pursuing “sovereign AI” contracts, and expanding into “neoclouds” and enterprise markets to diversify its revenue base :contentReference[oaicite:17]{index=17}.
Conclusion
Nvidia’s Q2 FY2026 results showcase massive growth, driven by data center demand and bolstered by extraordinary spending from two major direct customers. Yet, with those two alone making up nearly 40% of revenue, investor vigilance is warranted.
Moving forward, Nvidia’s ability to broaden its customer base—while maintaining demand among hyperscalers and expanding in emerging AI markets—will be key to sustaining its explosive growth trajectory.