Nvidia Reports 106% Revenue Growth Amid Circular Financing Strategy

Nvidia Inc. reported second-quarter fiscal 2027 revenue of $96.2 billion on August 26, 2026, marking a 106% increase year-over-year. The growth was primarily driven by the company's data center segment, which contributed $89 billion to the total. Looking ahead, the company issued forward revenue guidance for fiscal 2028 projecting growth of at least 70%.

To maintain this demand, the company has implemented a circular financing strategy. Nvidia invests in and partially finances AI labs, including OpenAI, Anthropic, xAI, Mistral AI, and Perplexity, to enable these firms to purchase Nvidia hardware. Chief Financial Officer Colette Kress stated that approximately 25% of fiscal 2028 sales are expected to come from customers financed by Nvidia.

While the company maintains that these agreements are low risk, the strategy creates significant balance sheet exposure to early-stage AI companies that are currently unprofitable.