Nvidia (NASDAQ: NVDA) is the world's leading supplier of high-end graphics processing units (GPUs) for data centers -- hardware that provides the computing power necessary for the development and use of artificial intelligence (AI) systems. The chipmaker can't keep up with the enormous demand for its top GPUs, which is driving a growth surge across its business.

Nvidia just reported results for its fiscal 2025 second quarter (which ended July 28), and they topped all expectations with yet another triple-digit percentage increase in revenue led by GPU sales. However, a concerning trend is emerging beneath the surface: Nearly half of the company's Q2 revenue came from just four customers, which appeared to be a big jump from the prior quarter.

This indicates that Nvidia is increasingly reliant on a handful of the world's largest technology giants to drive its growth, which makes the company vulnerable if sentiment toward AI starts to shift.

Continue reading

Source Fool.com