Nvidia Highlights Potential Revenue from Cloud Customers' $2 Trillion Backlog
Nvidia reported strong financial results for its fiscal second quarter, with revenue rising 106% year-over-year to $96.2 billion and data center revenue reaching $89.0 billion. During the earnings call, CFO Colette Kress highlighted a growing cloud industry backlog exceeding $2 trillion, projecting capital expenditures by top hyperscalers will reach nearly $800 billion in 2026 and over $1.3 trillion in 2027. Nvidia's share of this spending is estimated at around 24%, translating to potential revenue from hyperscalers alone reaching up to $315 billion by calendar year 2027, or about half of its total data center business. If current trends continue and the ACIE segment maintains a similar growth trajectory, Nvidia's fiscal 2028 data center revenue could reach as high as $630 billion. However, manufacturing constraints are limiting supply, with CEO Jensen Huang noting that demand is significantly higher than what can be fulfilled. Despite this, Nvidia expects to deliver about 70% year-over-year growth in fiscal 2028.
Tickers: $NVDA
Topics: capital expenditures cloud computing hyperscalers Nvidia S&P 500