Nvidia is sitting on roughly $500 billion in bookings for its AI chips covering 2025 and 2026, according to a report published on MSN under the headline "Nvidia Has $500 Billion in AI Chip Bookings Covering 2025 and 2026, a Backlog Investors Can Track for Future Revenue."
A backlog is simply orders that customers have committed to but that the company has not yet delivered and booked as revenue. For investors, that distinction matters: instead of guessing how much demand exists for Nvidia's chips next year, they get a number they can watch as it converts into sales quarter by quarter.
Nvidia CEO Jensen Huang has leaned on that figure to argue the stock is cheap. Per the same report, Huang claims investors can buy Nvidia shares "at a discount" given the size of the order book.
The supply side is where things get tight. Wedbush analyst Dan Ives says demand for Nvidia's chips is outpacing supply by "12 to 1," according to a Yahoo Finance piece carried by Google News that examines what the imbalance could mean for the stock's next move.
Taken together, the two claims describe a company that has, on paper, already sold far more than it can currently build. That is a good problem for Nvidia, but it is not a costless one — bookings are promises, and promises depend on manufacturing capacity, customers keeping their commitments, and the AI spending boom holding up long enough for those orders to be filled.
Why it matters: Nvidia's backlog has become the closest thing the market has to a public scoreboard for whether the AI buildout is real demand or hype, and a half-trillion dollars in claimed orders sets an unusually high bar for the next two years to clear.