Nvidia is looking more like the central bank of AI: Chart of the Day

Nvidia, a leading player in the AI boom, is taking on the role of a financial institution for the next phase of the technology. The company reported $96.2 billion in revenue, with a significant portion ($89 billion) coming from its Data Center segment. Nvidia is guiding for around $108 billion in revenue for the current quarter, marking its best day since February.

The company's investments in AI labs have reached $99 billion, double their value in 2020, and include stakes in Intel, CoreWeave, Coherent, Nokia, Synopsys, and Nebius, among others. Nvidia CEO Jensen Huang expressed regret for not investing more and sooner in these ventures. The company is also providing financial support to AI lab customers, with roughly a quarter of its business expected to come from such customers in the coming year.

Nvidia's accounts receivable have increased to $63.1 billion, and the average collection time has risen to 60 days from 45. The company has also issued $25 billion in debt, though it is unclear if this borrowing specifically funded the buybacks. Nvidia's investments in AI infrastructure are becoming a significant contributor to its profits, with gains on these investments adding $7.8 billion to income during the quarter.