Is NVIDIA Funding Its Own Stock Rally?

If you hold NVIDIA (NVDA) stock, one number deserves your attention: roughly a quarter. That is the share of fiscal 2028 business management expects from AI labs it will back with its own balance sheet. NVIDIA’s revenue more than doubled year over year in fiscal Q2 2027, so this number is easy to miss. An important thing to watch is how much future demand depends on NVIDIA backing its own customers.

Why Does NVIDIA Put Its Own Money Behind Its Customers?

Here is how this kind of support works, as a made-up example. A chipmaker invests in a young customer. That customer then spends the money on the chipmaker’s products.

The sale is real, but the chipmaker’s own money sits on both sides of it. Management said in the fiscal Q2 2027 call that some will call NVIDIA’s support circular financing.

Management says a surge in AI demand is driving a global buildout of computing infrastructure. It also describes revenue-sharing deals with cloud partners.

Management says these deals matter because, over time, they can expand NVIDIA’s addressable market. They can also create a recurring revenue stream tied to usage. That explains why NVIDIA does it, but not how big the support has become.

How Big Has NVIDIA’s Support For Its Customers Become?

NVIDIA has already invested nearly $50 billion in frontier AI labs, according to management. For one more AI lab, it will provide credit support for nearly 2 gigawatts of computing capacity. With some cloud partners,…