Google $GOOG investing in data centres in Q2. Does this bode well for Nvidia $NVDA?
Alphabet & Google CFO, Ruth Porat mentioned in the latest Q2 earnings that "total cost of revenues was $30.1 billion, up 15%, primarily driven by Other Cost of Revenues, which was $17.9 billion, up 17%. The biggest factor here was costs associated with data centers and other operations."

Again, when talking about capex "Turning to capex, the largest investments in the second quarter were in servers, followed by data centers and office facilities."

As of Q1 2023, data centers are Nivdia's largest revenue stream, over taking gaming for the firs time. Will Google's spend on data centres this quarter bode well for Nvidia, taking the pressure off the gaming sector due to recession fears?
Nvidia's first-quarter revenue was a record $3.75 billion, up 83% from a year ago and up 15% from the previous quarter.

Christian's avatar
I legit can’t wait for Nvidia’s earnings. Save the best for last is how I think of it lol. Data center revenue will definitely help take pressure of the gaming sector. Didn’t know Google had said that because I don’t follow them but that’s reality good news for us nvidia shareholders
Cameron McFarlane's avatar
@christian7621 that’s what I’m thinking too. Data centre spending was mentioned 4 different times in Googles earnings.
It makes up so much of their revenue and it’s growing extremely fast - super exciting for Nvidia
Gaurav Kotak @ Fincredible's avatar
This is such a great point you raise. Could lead to growth for NVDA but also is a create (customer) concentration risk, especially when those customers like Google also creat their own chips
Cameron McFarlane's avatar
Thanks @gkotak, of course but if you look at the bottom of the Nvidia slide “No customer larger than 10% of total revenue for the last 2 fiscal years”
Gaurav Kotak @ Fincredible's avatar
@moneyshark around 10% is also concentrated. Do you know how many customers make up say 50% of their revenue?