The lion's share of Nvidia's revenue is derived from companies like Microsoft, Meta Platforms, and Amazon. The tech giants use its hardware to build gargantuan server farms that run their consumer-facing AI products like Gemini and Meta AI. These companies have poured billions of dollars into Nvidia's coffers and have no plans to stop in the near future. While they are great customers to have, there is always risk in relying on a relatively small customer base. Any one of them could decide to switch to another provider, like AMD, or develop their own chips in-house, as many are reported to be doing. Nvidia would be smart to greatly expand its reach beyond them.
You are viewing a single comment's thread from: