It's trading at the same price as it did last October, and investors are wary of any signs that Nvidia's most important customers might be tightening their belts after years of big capital expenditures. This is particularly concerning in the wake of recent breakthroughs in AI out of China.
Much of Nvidia's sales go to a handful of companies building massive server farms, usually to rent out to other companies. These cloud companies are typically called "hyperscalers." Last February, Nvidia said a single customer accounted for 19% of its total revenue in fiscal 2024.