Nvidia forecasts $108B revenue in Q3 but warns of margin pressures
Nvidia delivered another record-breaking quarterly earnings report and raised its guidance for the current quarter to over $108 billion, marking a significant milestone. The chipmaker also provided an outlook for fiscal year 2028, forecasting 70% revenue growth driven by strong demand in data centers and AI infrastructure. Despite these positive developments, Nvidia highlighted challenges related to memory pricing and supply constraints that are expected to impact gross margins in the near term. Management noted efforts underway with suppliers to mitigate this issue but warned it could limit its FY2028 performance if not resolved effectively. The company is also expanding beyond hyperscalers into enterprise and government markets through new financing models. The stock initially dipped after hours following the report before rebounding sharply, reflecting investor confidence in Nvidia's long-term growth trajectory despite short-term headwinds.
Tickers: $NVDA