Nvidia Reports Strong Growth and High Demand Despite Supply Constraints
Nvidia (NVDA) reported a significant quarterly revenue increase of 106% to $9.6 billion, driven by robust demand for its processors in the data center segment, which saw an 117% rise to $8.9 billion. CEO Jensen Huang highlighted that AI has reached an inflection point and noted that current production capacity is constrained primarily by memory supply issues. The company forecasts a roughly 70% revenue growth rate for fiscal 2028 but acknowledges demand exceeds this projection. CFO Colette Kress outlined substantial capital expenditures from top hyperscalers, projecting $1.3 trillion in capex and over $2 trillion in cloud backlogs next year. Nvidia is also expanding its role beyond chipmaking by financing AI infrastructure through take-or-pay contracts. Nvidia's new Vera Rubin platform is gaining traction quickly and is expected to contribute around 20% of data center revenue soon, while Amazon Web Services plans to add two million additional GPUs in fiscal 2029. The company continues to improve its efficiency per gigawatt with each generation of hardware.
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