news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

new intelligence report

editor: editorial department

【new wisdom introduction】according to documents recently updated and released by nvidia and its quarterly investors, second-quarter revenue doubled to $30 billion thanks to four mysterious "heavyweight customers."

under the watchful eyes of the public, chip giant nvidia recently delivered a brilliant financial report.

according to nvidia's second quarter financial report for fiscal year 2025, the company reported a 122% increase in revenue and a 168% increase in net profit to us$16.6 billion.

nvidia's revenue more than doubled in the second quarter, thanks largely to a handful of "heavyweight customers" that account for almost half of the company's sales.

according to fortune magazine, these four vips accounted for 46% of nvidia's $30 billion in revenue, or about $13.8 billion.

in comparison, sales from this segment alone exceeded nvidia’s total sales in the same period last year. each customer contributed more than one-tenth of the total revenue.

their purchases are all related to the rapidly growing chip business for data centers. even someone like musk, who thinks the h200 is too expensive, is spending heavily to develop his own chips and build data centers.

unable to buy gpu, musk reveals ai behemoth dojo! self-developed supercomputer challenges nvidia, about 8,000 h100

although the names of these mysterious "heavyweight customers" are still unknown, they are probably some of the giants - amazon, meta, microsoft, alphabet, openai or tesla.

among a series of products, the most popular and the one that contributes the most revenue is ai chips such as h200, which can not only be used to train llm, but also support the reasoning process.

this reliance on a few large customers has caused the market to increasingly worry about whether nvidia can achieve sustainable growth.

after all, nvidia's current performance relies solely on the explosion in demand for ai chips, and some investors, such as elliott management and citadel, are skeptical about how long this growth can last.

moreover, history does provide reason for concern. after all, the semiconductor industry is notoriously "cyclical", with prosperity and depression always alternating.

one customer for one business

nvidia's business relationship with these "heavyweight customers" is crucial because they contribute a significant amount of sales.

in the financial report, nvidia specifically marked these customers and opened a separate chapter to discuss the risks of revenue concentration:

"we have gone through periods where we have generated a lot of revenue from a small number of customers, and that trend is likely to continue."

the trend has been extremely profitable: for the entire first half of the year, nvidia earned $5.60 in gross profit on every $10 in revenue — a margin most companies can only dream of.

this also explains why the company's after-tax profits almost quadrupled to $3.15 billion during the six-month period. whether such growth can continue is crucial for investment markets.

take "customer b" mentioned in the document as an example: its direct purchases accounted for 11% of nvidia's $30 billion revenue, or $3.3 billion.

this means that the business contributed by a single company exceeds the total revenue of $2.9 billion of the group's second largest division, the gaming division.

however, “customer b”’s purchases continued to be below 10% throughout the first half of the year, indicating that they seemed to have suddenly increased their spending significantly in the second quarter.

judging from the digital trends provided by nvidia, the same situation applies to "customer c".

last wednesday, in an interview with bloomberg tv, ceo jensen huang responded to a question about where nvidia's demand is coming from, aside from a handful of tech giants like microsoft, google and amazon.

huang claimed: "our customers today are relatively diverse," and then listed several customer groups very generally, such as sovereign ai, industries, and enterprises.

however, his own company data appears to contradict this conclusion.

for example, at this time last year, no single customer accounted for more than 10% of total revenue in any quarter.

gpus in short supply

matthias niessner, professor at the artificial intelligence laboratory of the technical university of munich and co-founder of synthesia, said that he believes that the four "heavyweight customers" are most likely amazon, google, microsoft and meta.

because these companies almost monopolize half of the gpus in the current market, resulting in a market situation of supply exceeding demand.

at the same time, he also pointed out that in addition to computing power, algorithms are also the focus of future research, especially in academia.

some netizens even compared themselves to "oliver twist" and used the following meme to mock the gpu computing power that is almost monopolized by these ai giants.

however, some netizens believe that these companies will stop buying at some point after building enough computing power, especially if they cannot obtain a significant return on investment.

nvidia shares plunge as blackwell production delayed

although nvidia's quarterly revenue nearly doubled, the launch of its highly anticipated next-generation ai chip blackwell has continued to be delayed.

the blackwell chip contains 20.8 billion transistors and is more suitable for training large language models. huang has previously stated that blackwell will contribute a lot of revenue to nvidia's business, and will start shipping in the second fiscal quarter and accelerate production in the third fiscal quarter.

however, it was revealed in august that there were design problems with the blackwell chip, which affected productivity and caused a three-month delay in shipment. therefore, accelerated production could only be postponed to the fourth quarter.

that stoked investor concerns about its slowing growth, sending nvidia shares down 7 percent in pre-market trading and later down 3.4 percent on the nasdaq.

nvidia's stock price plummeted by more than $200 billion! blackwell shipments delayed, huang was coldly looked down upon by wall street

simon french, chief economist and head of research at investment bank panmure liberum, said blackwell's production delays may have contributed to wall street's after-hours sell-off.

as of now, nvidia has not detailed the extent of the delay in blackwell deliveries, but said that the manufacturing production issues have been resolved by tsmc and early samples are being shipped to a small number of customers.