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Nvidia Posts Record Quarter but Flags Margin and Financing Risks

Nvidia’s surge in Data Center sales has lifted revenue as it faces margin pressure plus new financing risks.

Overview

  • The company, which reported results on Aug. 26, posted record fiscal Q2 revenue of $96.2 billion driven by a $89 billion Data Center business and gave a roughly $108 billion third‑quarter guide.
  • Nvidia said its next‑generation Vera Rubin systems have entered production and that large customers including AWS plan big GPU deployments, a factor that keeps demand well ahead of supply.
  • Management warned that rising high‑bandwidth memory costs and supply constraints will compress gross margins to about 74% next quarter and to roughly 71%–72% by fiscal Q4.
  • The company disclosed $366 billion in multiyear customer commitments, up to $108.5 billion in phased guarantees, sizable equity‑portfolio gains near $7.8 billion and that parts of a customer‑financing program were paused for review.
  • Analysts and reporters say those disclosures sharpen two risks: heavy customer concentration on a few hyperscalers and increased balance‑sheet exposure from Nvidia’s financing, guarantee and equity stakes, which could amplify losses if demand or counterparties weaken.