Nvidia Reports Strong Q2 Results but Faces Concerns Over Rising Receivables
Nvidia delivered a strong fiscal second quarter with $96.2 billion in revenue, up 106% year-over-year and well above expectations. The company also reported a gross margin of 75%, signaling robust profitability. Management projected around 70% annual revenue growth for the next fiscal year. Despite these positive results, concerns emerged from Nvidia's balance sheet data showing total assets rising over 50% in six months. A key issue is the increase in accounts receivable—from $38.5 billion to $63.1 billion—and a rise in days sales outstanding (DSO) from 45 to 60 days, indicating slower payment cycles. Nvidia attributed this trend to extended credit terms for large customers and strategic financial partnerships aimed at supporting AI infrastructure spending. While these moves may secure long-term contracts, they raise questions about whether revenue growth is being inflated by financing rather than organic demand.
Tickers: $NVDA
Topics: Balance Sheet Analysis Nvidia Q2 Earnings Revenue Growth