Nvidia Reports $96.2 Billion Revenue and Acquires Hugging Face

Nvidia Corporation reported second-quarter FY2027 revenue of $96.2 billion, representing a 106% year-on-year increase. Data center revenue drove the majority of this growth, totaling $89 billion. To maintain this trajectory, the company is transitioning from a chipmaker to a financial facilitator, providing credit support and cloud-capacity backstops for its customers. This strategy includes a $500 billion third-party capital platform with partners such as BlackRock and Goldman Sachs, as well as guarantees up to $105 billion for an OpenAI-anchored project in Ohio.

As part of a strategic move to influence the open-source developer community and counter closed-source competitors like Google, Nvidia has reportedly agreed to acquire the open-weight AI model platform Hugging Face for $13 billion. This acquisition comes as CEO Jensen Huang promotes the upcoming Rubin supercomputing platform to sustain market dominance.

Despite rapid growth, the company faces several headwinds. Critics warn of a potential credit bubble due to Nvidia's $279 billion in advances to suppliers and its practice of investing in customers through its venture arm, NVentures. Additionally, the company must contend with falling AI token prices, energy constraints, and public opposition to water-intensive data centers. While S&P maintains an AA stable rating, analysts at Morgan Stanley have warned of wrong-way risk if AI monetization slows.