Nvidia Exceeds Wall Street Revenue Growth Expectations with 70% Guidance
Nvidia (NASDAQ:NVDA) guided to a fiscal 2028 revenue growth of approximately 70%, far exceeding the 45% expected by analysts, which contributed to an almost 9% rise in its stock price. The company reported strong demand for AI chips but is constrained on supply side issues that limit deliverable revenue to below potential levels. John Vinh from KeyBanc Capital Markets highlighted during a CNBC appearance that while the market was looking for up to 45%, Nvidia's actual growth guidance of around 70% exceeded expectations. He noted that demand could reach as high as 100%, but supply constraints are limiting delivery, which may extend into fiscal 2028. The company is also facing challenges in its supply chain and manufacturing capabilities, with Jensen Huang acknowledging the difficulties during a call. The gap between demand and deliverable product introduces new risks for investors.
Topics: AI growth guidance semiconductors supply chain constraints