Investor concerns are growing as Nvidia's reliance on a small number of customers deepens, the tech outlet The Information reported on the 13th.
According to filings cited by the outlet, in the first half of fiscal year 2027 (February 2026–January 2027), the top customer accounted for 16% of sales, the No. 2 for 15%, and the No. 3 for 13%, with the top three totaling 44%. That marks a higher concentration than the top two in fiscal year 2026 (36%).
The gap is even starker compared with fiscal year 2023, when no customer accounted for more than 10% of sales. Including accounts receivable, the top five customers made up 70% of total sales in the first half of fiscal year 2027.
Sales in the data center institutional sector, which reflect demand for AI chips, surged from $15.0 billion in fiscal year 2023 to $193.7 billion in fiscal year 2026, and consensus expects them to roughly double year over year in fiscal year 2027.
However, a risk flagged is that customers may reduce their purchase volumes over time. Michael Burry, the investor who predicted the 2008 subprime mortgage crisis, has in recent months also cited Nvidia's deepening customer concentration as a key risk factor.
Nvidia's disclosed top three customers likely include intermediaries such as Dell and Hon Hai Technology (Foxconn) that resell Nvidia chip–equipped servers to multiple corporations. The actual end demand is from cloud corporations, and in February, Nvidia Chief Financial Officer Colette Kress said the top five cloud corporations account for more than half of data center sales. The Information said specific top customers are unclear but analyzed that SpaceX, Meta Platforms, and Microsoft are likely included.
These big tech corporations are also pursuing in-house AI chip development, leading to expectations they could reduce reliance on Nvidia over time. In that context, The Information reported that Nvidia is expanding investments in so-called "neo-cloud" corporations such as CoreWeave and Nebius, focusing on building a new customer base.