We Must Admire a $5 Trillion Outfit
November 5, 2025
The title of this piece refers to the old adage of not putting all of your eggs in one basket. It’s a popular phrase used by investors and translates to: diversify, diversify, diversify! Nvidia really needs to take that heart, because despite having record breaking sales in the last quarter, their top customer base is limited to three. Tom’s Hardware reports, “More Than 50% Of Nvidia’s Data Center Revenue Comes From Three Customers — $21.9 Billion In Sales Recorded From The Unnamed Companies.”
Business publication Sherwood reported that 53% of Nvidia’s sales are from three anonymous customers and they total $21.9 billion. Here’s where the old adage about ego enters:
“This might not sound like a problem — after all, why complain if three different entities are handing you piles and piles of money — but concentrating the majority of your sales to just a handful of clients could cause a sudden, unexpected issue. For example, the company’s entire second-quarter revenue is around $46 billion, which means that Customer A makes up more than 20% of its sales. If this company were to suddenly vanish (say it decided to build its own chips, go with AMD, or a scandal forces it to cease operations), then it would have a massive impact on Nvidia’s cash flow and operations.”
The article then hypothesizes that the mysterious customers are Elon Musk, xAI, OpenAI, Oracle, and Meta. The company did lose sales in China because of President Trump’s actions, so the customers aren’t from Asia. Nvidia needs to diversify its client portfolio if it doesn’t want to sink when and if these customers head to greener pastures. With a $5 trillion value, how many green pastures await Nvidia. Just think of them and they will manifest themselves. That works.
Whitney Grace, November 5, 2025
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