Nvidia's Cloud Customers Sit on $2 Trillion Backlog

Nvidia's quarterly revenue rose 106% year over year to $96.2 billion in its fiscal second quarter, outpacing the 85% growth recorded in the first quarter.

Data center revenue surged 117% to $89.0 billion, and CFO Colette Kress revealed that cloud customers have a staggering $2 trillion backlog, with capital expenditures expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027.

To calculate Nvidia's share of the hyperscaler spending, we look at its data center revenue, which is divided into two categories: hyperscalers (public clouds and large consumer internet companies) and ACIE (AI clouds, industrial, and enterprise customers).

Hyperscalers accounted for $48.7 billion in revenue in the second quarter, a 13% increase from the first quarter, and more than double last year's figure.

Assuming Nvidia's share of hyperscaler spending remains steady at around 24%, we can estimate its revenue share in 2026 and 2027: $192 billion for hyperscalers alone, with the entire data center business expected to reach $575 billion to $630 billion in fiscal 2028.

Nvidia's manufacturing capabilities will likely be a limiting factor in meeting this demand, as CEO Jensen Huang noted that even with higher demand than forecasted, supply constraints will prevent revenue growth from exceeding 70% in the next year.