Nvidia Has $96 Billion in Quarterly Revenue. Here's Why the Stock Is Still a Buy.

Nvidia (NASDAQ: NVDA) reported revenue of $96 billion in fiscal Q2, marking a staggering 106% year-over-year increase. This growth trajectory is driven by strong demand from hyperscalers like Amazon, Alphabet, and Microsoft, which accounted for nearly half of Nvidia's data center revenue, totaling $49 billion. Additionally, revenue from non-hyperscaler customers, including neocloud, industrial, and enterprise segments, surged 138% year-over-year to $40 billion.

This diversification of customer base mitigates potential risks posed by hyperscalers' increasing reliance on in-house chips. Nvidia's next-generation Vera Rubin chipset platform, set to ship in early August, is expected to contribute about 20% of data center revenue in the upcoming quarter. Analysts project significant revenue growth, with $411 billion for fiscal 2027 and a projected 65% increase to $678 billion in fiscal 2028.

Despite challenges like higher memory prices, Nvidia's leadership position in AI chips and its diversified customer base position it for substantial future growth. The stock's forward multiple of 15 times earnings is considered a bargain, and its 2027 earnings may surpass Wall Street estimates, making it an attractive investment opportunity.