What happened
Nvidia reported a 62% year-over-year revenue increase to $57 billion, driven by record data centre earnings and demand for AI chips, including Blackwell GPUs. The company secured a $500 billion order backlog through 2026, encompassing future Rubin processors, with major cloud providers and hyperscalers relying on its hardware. Analysts project continued sales growth of 39% in fiscal year 2027, though growth is forecast to decelerate to 22% by 2028.
Why it matters
The substantial reliance on Nvidia's AI chip technology by major cloud providers and hyperscalers introduces a significant single-vendor dependency for foundational AI compute infrastructure. This increases exposure to supply chain vulnerabilities, potential pricing leverage, and technology lock-in, creating an oversight burden for procurement and strategic planning teams. The concentration of critical AI hardware within one supplier raises due diligence requirements for long-term operational resilience and cost management.
