The company depends on two large clients for almost a third of its revenue.
NVIDIA's annual report on Form 10-K appeared on the company's website the same day the quarterly report was published, making it much easier to analyze the computing accelerator vendor's revenue structure. Firstly, as it became clear, the sale of video cards as such brought NVIDIA in the fourth quarter 4.5 times less money than the shipment of server computing accelerators. At the end of the year, 77% of the company's revenue came from the server segment.
Image Source: NVIDIA
In its annual report on Form 10-K, the company admitted that one large client accounted for 13% of NVIDIA's total revenue in the last fiscal year; it naturally belonged to the server segment of the market. Apparently, we are talking about one of the cloud service providers. Moreover, at the quarterly event, the company’s management pointed to the ability of cloud providers to generate approximately half of NVIDIA’s total server revenue based on the results of the last quarter.
Moreover, NVIDIA admitted in its filing that one of its customers indirectly controlled 19% of the company's total annual revenue. Considering that it generated more than $60 billion in revenue for the 2024 fiscal year, the mysterious client accounted for a little less than $12 billion. This is a significant amount and a serious dependency, which is why NVIDIA management mentions this factor in the section describing the risks to its business. Tellingly, in 2022 and 2021 there was not a single client who would account for more than 10% of NVIDIA’s revenue, so the company grew giants in this area only in 2023 precisely in the wake of the boom in artificial intelligence systems.