Nvidia Announces Record-Breaking Year-Ahead Revenue Forecast of 70% Growth
Nvidia stunned investors with an unprecedented year-ahead forecast projecting a 70% revenue increase for fiscal 2028, far exceeding analyst expectations. The company cited surging demand for its AI chips growing at 100%, driven by both hyperscale cloud providers and non-hyperscalers such as sovereign AI initiatives, startups, and enterprises. CEO Jensen Huang emphasized the extraordinary nature of this forecast, noting that it was a first in Nvidia's history. CFO Colette Kress highlighted customer forecasts indicating potential for even greater growth if supply constraints were not an issue. Despite these challenges, Q2 results showed revenue soaring 106% year-over-year to $96.2 billion and earnings per share exceeding expectations. The forecast has sparked significant market reaction with the stock rallying over 4% in after-hours trading. However, concerns remain about Nvidia's aggressive investments across the AI ecosystem being funded from its own cash reserves.
Tickers: $NVDA
Topics: AI revenue forecast stock rally supply chain