AI microchip supplier Nvidia, the world’s most valuable company by market cap, remains heavily dependent on a few anonymous customers that collectiv

Three mystery whales have each spent $10 billion-plus on Nvidia’s AI chips so far this year

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2024-11-22 14:30:04

AI microchip supplier Nvidia, the world’s most valuable company by market cap, remains heavily dependent on a few anonymous customers that collectively contribute tens of billions of dollars in revenue.

The AI chip darling once again warned investors in its quarterly 10-Q filing to the SEC that it has key accounts so crucial that their orders each crossed the threshold of ten percent of Nvidia’s global consolidated turnover.

An elite trio of particularly deep-pocketed customers for example individually purchased between $10-$11 billion worth of goods and services across the first nine months that ended in late October.

Fortunately for Nvidia investors, this won’t change any time soon. Mandeep Singh, global head of technology research at Bloomberg Intelligence, says he believes founder and CEO Jensen Huang’s prediction that spending will not stop.

“The data center training market could hit $1 trillion without any real pullback,” by that point Nvidia share will almost certainly drop markedly from their current 90%. But it could still be in the hundreds of billions of dollars in revenue annually.