Nvidia's 'hidden' ACIE business, serving enterprise, neocloud, and sovereign clients, grew 138% YoY to $40 billion, outpacing hyperscaler revenue growth
Nvidia's ACIE segment, which covers AI cloud providers, industrial customers, enterprises, and sovereign buyers, reached $40 billion in its most recent fiscal second quarter, marking a 138% year-over-year growth. This significantly outpaced the 13% sequential gain from direct hyperscaler sales. Management expects ACIE to drive most of the next quarter's Data Center growth, diversifying Nvidia's revenue profile beyond a few major tech giants. However, Nvidia carries $108.5 billion in guarantee obligations for neocloud partners, and days sales outstanding increased from 45 to 60 days, signaling elevated financing risk.
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