Industry analyses suggests that these 3 companies are likely:
1. Microsoft
2. Amazon Web Services
3. Google
I’m not personally invested in Nvidia. To Nvidia investors:
Does hearing that such a substantial portion of revenue is concentrated in 3 customers worry you?
I know very little about the industry. I’ve heard, however, that both Amazon and Google are creating their own custom chips. If they scale up their chip-making operations, it could lead to needing to purchase less GPU’s from Nvidia.
Also, making up such a large part of sales, doesn’t this give them increased bargaining power? It would seem that these companies are in a position of leverage to negotiate better pricing from Nvidia, which could reduce margins.
Lastly, there’s a question of competition. Again, I don’t know much, but it seems that Intel and AMD are aggressively improving their AI hardware offerings. If they gain market share, Nvidia’s largest customers could look to start diversifying their suppliers.
I’d love to get the Nvidia investors perspective on such a large part of revenues being concentrated in 3 customers.