Nvidia Issues First-Ever Year-Ahead Forecast Projecting Revenue Growth of 70%
NVIDIA Corporation (NASDAQ:NVDA) announced its first-ever year-ahead revenue forecast, projecting a 70% growth rate for fiscal 2028. This would push the company's projected revenue to between $673 billion and $700 billion, surpassing Apple and Alphabet in U.S. tech sector rankings by revenue. The guidance followed Q2 results where revenue more than doubled year-over-year to $96.22 billion, with data center sales accounting for 92% of total revenue due to strong AI demand. NVIDIA CEO Jensen Huang emphasized that the growth is driven by productive and profitable AI applications and noted supply constraints—particularly memory shortages—as a limiting factor rather than an indicator of peak demand. The forecast also excludes China's data center market, suggesting untapped potential there. Despite positive investor reaction (with shares rising 8.7%), some analysts remain skeptical due to the unprecedented nature of NVIDIA’s long-term guidance. The company is heavily investing in securing supply chains, with memory procurement commitments more than doubling from $119 billion to $279 billion in a single quarter. While this signals confidence in AI demand, it also introduces financial risks if customer spending slows or suppliers fail.
Topics: AI growth NVIDIA revenue forecast semiconductor sector