Nvidia reported another earnings beat in Q2 fiscal 2027, but several red flags concern investors. Accounts receivable surged 63% to $63.1 billion from $38.5 billion between January and July, with projections showing growth to $147 to $171 billion by 2029. Five direct customers now represent 70% of accounts receivable, up from three customers accounting for 56% a year earlier. Supply chain commitments more than doubled to $279 billion, with total financial commitments reaching $366 billion. Meanwhile, free cash flow dropped sharply from $49 billion to $21 billion, well below the $43 billion estimate.
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