Who are Nvidia’s biggest customers?

Nvidia (NASDAQ: NVDA) has taken the tech world by storm over the past year and a half. While OpenAI’s ChatGPT sparked the rise of generative artificial intelligence (AI), it’s Nvidia that has reaped the most loot so far.

Shares of the graphics processing unit (GPU) superstar are up 500% since the start of 2023 as sales and profits soar. Nvidia’s products are the backbone of the AI ​​infrastructure and demand for them is so high that GPU shortages have occurred.

On its recent earnings call said Tesla noted that it had installed 35,000 Nvidia’s H100 GPUs in supercomputers. It was the latest sign that Nvidia’s hardware is shorthand for AI proficiency, because the more components a company has, the more AI training and AI inference it can do.

Given Nvidia’s value in the AI ​​race, it’s natural to wonder who Nvidia’s biggest customer is.

Image source: Getty Images.

Nvidia’s top customers

Nvidia does not reveal who its largest customer is. That’s not surprising, since that information would be valuable to competitors. However, in its recent 10-K filing, the company said that one customer represented 13% of its revenue from its computer and networking segment, and that an indirect customer that buys Nvidia products through integrators and distributors, including the customer above, accounted for 19% represents. % of company turnover. This name also comes from the computer and network segment.

It’s not entirely clear who that customer is, but we have a good idea of ​​who Nvidia’s biggest customers might be based on media reports and inferences.

It’s not surprising that big tech companies like this Amazon, Metaplatforms, MicrosoftAnd Alphabet is believed to be one of Nvidia’s largest customers, accounting for about 40% of revenue.

It’s also clear that AI startups, such as OpenAI, and autonomous vehicle companies, such as Tesla, are important customers of Nvidia. At this point, any company investing in AI is almost certainly an Nvidia customer.

Nvidia’s customer concentration does come with some risk, especially if those big tech companies scale back their spending, but the bigger threat may be incoming competition from AMD And Intel. If Nvidia can defend against that, the stock should remain a winner.

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Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon and Meta Platforms. The Motley Fool holds positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls to Intel, long January 2026 $395 calls to Microsoft, short January 2026 $405 calls to Microsoft, and short May 2024 $47 calls to Intel. The Motley Fool has a disclosure policy.