Nvidia’s $15.6 billion in customer advances show demand, and a growing financing tab

Nvidia’s customers are paying for GPUs before they even arrive. In the first half of fiscal 2027, which ended July 26, 2026, the chipmaker recorded $15.6 billion in customer advances, up from $7.5 billion in the same stretch a year earlier.

Nvidia is also extending more credit, carrying bigger receivables, and backstopping a massive data-center project for an OpenAI affiliate.

The prepayment boom, by the numbers

Of the $15.6 billion in advances, Nvidia recognized $13.0 billion as revenue during the period. The prepayments cover hardware, software support and other arrangements tied to large data-center buildouts.

Nvidia’s supply and commitment backlog reached $279 billion as of July 26, 2026, compared with $119 billion one quarter earlier. Most of that is expected to land between fiscal 2027 and fiscal 2029.

The other side of the ledger

Accounts receivable climbed to $63.1 billion. Days Sales Outstanding, which measures how long it takes to collect after a sale, stretched to roughly 60 days from 45 days.

Nvidia has started offering investment-grade customers extended payment terms of 90 days to one year on large data-center purchases.

Five direct customers accounted for 70% of the $63.1 billion receivables balance at quarter-end. A single customer represented 16% of second-quarter revenue.

The $105 billion guarantee

In August 2026, Nvidia agreed to guarantee up to $105 billion in lease and power obligations connected to an OpenAI affiliate’s multi-phase data-center campus in Ohio. The arrangement includes commitments for exclusive use of Nvidia hardware.

What this means for Nvidia and its investors

Customer advances more than doubled year over year, $13.0 billion of them have already become revenue, and the backlog sits at $279 billion with most of it expected over the next few fiscal years.

Rising receivables, a DSO that moved from 45 to roughly 60 days, extended terms of up to a year, and a guarantee of up to $105 billion all point the same way: Nvidia is increasingly helping its customers afford what they buy.

For investors, the practical watch list is fairly clear. First is DSO: whether it stabilizes near 60 days or keeps drifting longer. Second is customer concentration: with five customers holding 70% of receivables and one customer driving 16% of quarterly revenue, any wobble at a major buyer would show up quickly in Nvidia’s numbers. Third is the Ohio guarantee, since Nvidia’s exposure is tied to lease and power payments rather than a one-time chip sale.