Nvidia Brushes Off Circular Financing Concerns With Record Sales and 70% Revenue Growth Forecast

Nvidia has faced concerns over its 'circular financing' practices, but the company's CFO Colette Kress pushed back on Wednesday. According to Kress, frontier AI labs are growing faster than their balance sheets can support, and access to compute is becoming a key constraint.

Kress explained that Nvidia's investments in AI and cloud firms, as well as its financing partnerships, are necessary to help cash-strapped AI companies secure the computing infrastructure they need. The company has committed nearly $50 billion to frontier AI labs, with Kress arguing that these investments will generate excellent returns and limited risk.

Nvidia reported record Q2 sales of $96.2 billion, beating expectations for the 15th consecutive quarter. The chipmaker also forecasted a 70% jump in its fiscal 2028 revenue, which has silenced critics worried about an imminent slowdown in chip demand.