Nvidia says two mystery customers accounted for 39% of Q2 revenue
techcrunch.comIt doesn't really matter who those customers are. The fact that matters is that they are only 2 that make 39% and that top 5 accounts for most of the revenues.
At current market cap of NVidia, their needs to be a massive increase in those customers spending, to the tune of trillions of $, and NVidia maintaining 70% margin. It's quite obvious that those customers would be much better off investing just a few billions to maybe find an alternative solution here. Maybe not now, maybe not next years, but certainly sooner that >50 years, which is the current NVidia PER.
The insanity of current valuations is one for the history books.
Not what I'd call a balanced open market in NVDA stocks then because two customers changing tech choices could tank their profits. That's massive investor risk.
> because two customers changing tech choices
for that to happen there'd need to be a choice in the first place. Currently, there isn't. Not even in trials. Then that choice would need to work at thousands of nodes scales. Then that choice would need to have software support. And so on, and so forth.
That’s what a lot of people are not seeing. NVIDIA does not only supply acceleration cards you plugin into an PCI express slot. They provide a whole ecosystem from boards, network connectivity, software etc. I think that’s their real advantage.
I think it might be Supermicro building superclusters for Meta, Tesla, xAI and others.
Dell’s data center group has also grown in leaps. HPE is also possible.
Any guesses who Customer A and Customer B are?
Based on the amount of money they spent, I'm guessing Meta is one.
And xAI the other one?
follow the money... and you'll really know.