Nvidia sales forecast raises investor concerns over AI spending

Nvidia just posted $96.2 billion in quarterly revenue, a 106% jump from the same period last year, and beat analyst expectations by roughly $4 billion. The reward for that performance? A stock price decline in after-hours trading. The numbers look great, and that’s the problem Nvidia’s fiscal second-quarter results for 2027, covering the period ending July 26, told a story of relentless demand for AI chips. Data-center revenue, which now accounts for roughly 94% of total sales, surged to $89 billion, a 117% year-over-year increase. The company had guided for $91 billion in total revenue back in May, then went ahead and delivered $96.2 billion. Forward guidance was equally muscular. Nvidia projected approximately $108 billion in revenue for the current quarter, clearing the Street’s consensus estimate of $104 billion by a comfortable margin. The company also set an ambitious milestone: $1 trillion in cumulative revenue from its Blackwell and upcoming Vera Rubin chip platforms through 2027. The customer concentration question Two customers accounted for 36% of Nvidia’s sales in the last fiscal year. Nvidia shares had already declined approximately 7.5% over seven trading sessions hea...