Overview
- Nvidia reported on Aug. 26 a fiscal Q2 with roughly $96 billion in revenue, beat estimates, and guided Q3 to about $108 billion while projecting roughly 70% revenue growth for the next fiscal year.
- The company’s data‑center business produced about $89 billion and the AI Clouds, Industrial and Enterprise unit reached roughly $40.3 billion, showing rapid concentration of sales in AI infrastructure.
- Shares rallied strongly after the report but quickly retraced gains as Wall Street split between sharply higher price targets, including an outlier $515 call, and caution over the outlook.
- Analysts and reports flagged extensive vendor‑financing and contingent guarantees that could create tens to hundreds of billions in potential exposures, a concern that contrasts with Nvidia’s rising gross debt and recent $25 billion notes issuance.
- Nvidia warned gross margins will face pressure from higher HBM memory costs, a dynamic that boosts memory suppliers and creates a tradeoff between cash returns to shareholders and the balance sheet risks tied to large customer projects.