❯ Nvidia’s Quarterly Revenue Doubles YoY to $96.2 Billion; Huang Sees Backlog Topping $1 Trillion

FINANCIALSNvidia’s fiscal 2027 second-quarter revenue was $96.22 billion, up 106% year over year and more than $4 billion above market expectations. Data center revenue reached $89.02 billion, up 117% year over year, with that segment alone accounting for more than 90% of total company revenue. GAAP net income was $59.7 billion, up 126% year over year, with a gross margin of 75.0%. After the earnings release, shares turned higher in after-hours trading, up about 3.8%.

GUIDANCEThe company guided third-quarter revenue to $108 billion, plus or minus 2%, about $3.8 billion above consensus. CFO Colette Kress confirmed that the prior combined $500 billion AI chip order figure for 2025 and 2026 has been raised, because full-year Rubin orders have already been booked. Huang went further, saying the backlog will be at least $1 trillion by 2027, and expects fiscal 2028 revenue to climb about another 70%.

FUNDINGHuang said in the announcement that AI has reached an inflection point, and tokens are both productive and profitable. But the flip side of this ledger is the financing platform announced on August 10 — Nvidia has teamed up with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to channel more than $500 billion in third-party capital into AI infrastructure. Questions center on one point: Nvidia is simultaneously supplier, investor, financier and guarantor, and there is still no widely accepted standard for GPU depreciation curves and residual-value pricing. If a borrower defaults, no one can answer at what price the pledged GPUs would change hands. In this compute business, the one line item nobody has calculated is which depreciation schedule should apply to the residual value of GPU collateral.

▪ SIGNALThe weight of a $1 trillion backlog depends on what money buyers pay with — and this report does not answer that question.