By Yuvraj Malik
Publication Date: 2026-08-27 02:10:00
Nvidia has committed nearly $50 billion to frontier AI labs, and bets on strong returns and limited risk.
Nvidia reported record Q2 sales and a 70% fiscal 2028 revenue growth forecast, triggering an overnight gain of over 5% in the stock.
Stocktwits sentiment for NVDA was ‘extremely bullish.’
Nvidia Corp. on Wednesday addressed concerns that its investments in AI and cloud firms and the newly announced financing partnerships could amount to circular financing, arguing that the arrangements are necessary to help cash-strapped AI companies secure the computing infrastructure needed to meet surging demand.
“We see it differently,” CFO Colette Kress said, explaining that frontier AI labs are growing faster than their balance sheets and credit profiles can support. Their growth, she said, is increasingly constrained not by customer demand or technology, but by access to compute.
“We’re going through a major computing platform shift, the creation of one of the most important technologies in human history,” Kress said. “We believe these investments measured against the strength of their demand, the business they create for us, the ecosystem they build on Nvidia’s platform and the equity returns on our invested capital will be excellent, and our risk is limited.”
Nvidia has…
