Nvidia's Blockbuster Earnings Overshadowed by Financial Fears

Nvidia's Q2 earnings report was a blockbuster, with revenue hitting $96.2 billion, a 106% jump from the prior year.

However, Wall Street is more focused on the company's financial commitments, which could expose Nvidia to between $80 billion and $200 billion in peak liabilities through 2028.

CNBC personality Jim Cramer has weighed in on the debate, advising investors to hold onto the stock despite concerns over debt and financing exposure.

Nvidia's gross debt has ballooned to $33.5 billion, with a significant portion tied to customer financing structures and guarantees for major AI projects, including OpenAI's backing of Nvidia which includes equity investments estimated at around $30 billion, plus significant conditional guarantees tied to project financing.