The 22% Customer Nobody Can NameThin moat

The concentration line in Nvidia's fiscal 2026 annual report is stark: one direct customer at 22% of total revenue, another at 14%¹. The year before, the largest direct customer was 12% and two more were 11% apiece; the year before that, a single customer at 13%. Concentration is not a stable background condition here — it is intensifying rapidly as the AI build-out consolidates into fewer, larger orders.

Nvidia identifies these buyers only as Customer A and Customer B. That is standard practice and legally sufficient, but it leaves owners of the business unable to assess their most important counterparties: whether they are financially sound, whether they are building substitutes, whether the orders are for their own use or for resale to someone else. The disclosure tells you the exposure exists without telling you what it is exposed to.

The risk is not that a customer disappears — it is that revenue this concentrated moves in steps rather than curves. One buyer deciding to pause, digest, or shift a generation of spending to a custom part does not trim Nvidia's growth; it removes a fifth of the revenue line. Watch the concentration percentages in each annual filing, because this is the number that converts an AI-demand wobble into an Nvidia earnings shock — and it has been moving the wrong way for two years.