According to The Information on September 13, three NVIDIA customers each contributed over 10% of total revenue in the first half of the current fiscal year, which ended in July, with their combined share reaching 44%. In the previous fiscal year, two customers accounted for 36%.
The increase in customer concentration comes amid the explosive growth of NVIDIA's data center business. NVIDIA did not name these three customers, but analysts believe they may include Dell, Foxconn Technology, Microsoft, Meta, and SpaceX, among others. These large customers are also advancing their own AI chip development plans, which could lead to a decrease in future procurement demand.
Additionally, NVIDIA disclosed in late August that its accounts receivable balance jumped 64% to $63 billion in the first half of the year. This was due to the company extending payment terms for large, multi-quarter agreements with some investment-grade major customers, from 45 days in the previous quarter to 60 days, with potential further extensions to 90 days or up to a year in the future. Short-seller Michael Burry has listed NVIDIA's rising customer concentration as one of the significant risks.
NVIDIA's customer concentration reportedly continues to rise, with three clients contributing 44% of revenue in the first half of the year, and accounts receivable surging 64% to $63 billion.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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