Nvidia CFO says about half of its data center business comes from customers beyond hyperscalers
Other customer segments are growing faster than the cloud giants that once dominated Nvidia's sales.
Nvidia's CFO, Colette Kress, disputed AI skeptics during Wednesday's earnings call, revealing that more than half of the company's data center revenue now comes from customers outside of hyperscalers. Total revenue reached $96.2 billion, a 106% year-over-year increase, while non-GAAP EPS was $2.22. Data Center revenue specifically amounted to $89 billion, up 117% year-over-year.
Nvidia's guidance for the upcoming quarter stands at $105.8–$110.1 billion, with fiscal 2028 sales projected to grow by 70% from the previous year. CEO Jensen Huang emphasized that demand for Nvidia's products is accelerating. Kress explained that while hyperscalers like Microsoft, Google, Amazon, and Meta remain a significant growth driver, non-hyperscaler growth, encompassing sovereign, regional NeoClouds, enterprise edge, and air-gap data centers (referred to as AICE), now accounts for roughly half of the company's data center business.
The data center revenue is split between $49 billion from hyperscalers and $40 billion from AICE. Kress cited the rapid growth of Nvidia's AI-native startup ecosystem and increasing venture capital funding in AI as further evidence of continued demand.
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