Source: Fortune.com
Summary
Nvidia forecast a 70% revenue increase for fiscal 2028, far exceeding analyst expectations. The company reported Q2 revenue of $96.2 billion, up 106% year-over-year. CEO Jensen Huang highlighted demand for AI chips growing at 100%. CFO Colette Kress noted supply constraints limited growth but said the company could deliver the 70% target. Analysts called the guidance “unprecedented” and “extraordinary.”
Our Reading
The numbers tell one story.
Nvidia’s 70% revenue forecast for 2028 is way ahead of expectations.
Executives called it “extraordinary” and “unprecedented.”
Supply chain issues are holding back even higher growth.
The market is stunned by the scale of the numbers.
Author: Evan Null
Unprecedented Guidance
Nvidia’s 70% revenue forecast for fiscal 2028 is the first time the company has provided such long-term guidance. The number is more than $100 billion above analyst estimates. Investors reacted strongly, sending shares up in after-hours trading. The forecast comes after a Q2 report that beat expectations on all fronts.
Supply Constraints
Nvidia’s CEO, Jensen Huang, acknowledged that supply chain challenges are limiting growth. He said that without these constraints, revenue growth would be even higher. The company is struggling with the same supply issues as other tech giants. Huang emphasized that the 70% forecast is achievable given current supply levels.
AI Demand Explosion
AI demand is growing rapidly, with non-hyperscale customers accounting for about half of Nvidia’s business. The company sees a 100% annual growth rate in this segment. Huang attributed the surge to the rise of agentic AI, which consumes significantly more compute than human users. He predicted the number of AI agents in businesses will grow from 40,000 to 4 million.
Investment Strategy
Nvidia is making significant investments in AI infrastructure, including $50 billion in frontier AI labs. The company is also partnering with major financial firms like BlackRock and Goldman Sachs to raise over $500 billion in third-party capital. CFO Colette Kress defended the strategy, calling it low-risk and high-reward.
Margin Concerns
Nvidia’s Q3 gross margin guidance was slightly lower than Q2, but still better than market expectations. The company is facing rising memory costs, which have pushed supply commitments to $279 billion. Kress said Nvidia has secured long-term agreements with suppliers to manage price increases. However, some analysts warn that raising prices could be risky if AI ROI remains uncertain.
