Nvidia's Earnings Reveal a New Buyer Class Outgrowing Microsoft, Google and Amazon
For the last few years, Wall Street has obsessed over Nvidia's revenue concentration from artificial intelligence (AI) hyperscalers.
Overview
Nvidia's (NASDAQ: NVDA) second-quarter 2027 (ended July 26, 2026) earnings report made the usual point in unusually large numbers. Data center revenue reached $89 billion during the quarter, up 18% from the prior quarter and 117% year over year. What I think matters more than the headline figure is the bifurcation inside that number.
Hyperscale customers generated $48.7 billion in revenue, up 13% sequentially and 102% from a year ago. The AI Clouds, Industrial, and Enterprise group (ACIE) generated $40.3 billion, an increase of 25% from last quarter and 138% year over year.
Details
While big tech is still the largest buyer of Nvidia's systems, it is no longer the fastest growing. That shift changes how the AI story should be read.
Source
Originally published at www.fool.com.
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