Nvidia Warns of Supply Chain Constraints Through 2028 Amid AI Growth
During its Q2 fiscal year 2027 earnings call, Nvidia reported revenue reaching $96.2 billion, more than doubling from the previous year due to strong performance in AI infrastructure and data center segments. Data center revenue alone hit $89 billion, with hyperscalers contributing $49 billion of that total. Despite ongoing memory shortages, the company is expanding its collaboration with AWS by deploying 2 million additional GPUs across AWS infrastructure. Nvidia's CFO noted supply constraints will persist through fiscal year 2028 and may impact revenue projections for that period, which are expected to grow 70% year over year. The firm is working closely with memory suppliers to increase capacity in line with its roadmap. Analysts predict rising prices for DRAM and NAND flash chips due to surging demand from AI workloads. Forrester analyst Naveen Chhabra emphasized that enterprises should focus on extracting business value from existing AI infrastructure rather than acquiring more GPUs, as supply constraints are expected to remain a challenge in the next one to two years.
Tickers: $NVDA
Topics: AI infrastructure data center revenue GPU demand memory shortages