Nvidia CEO Outlines Strong Growth Outlook and Margin Improvements
After reporting strong second-quarter results that exceeded Wall Street expectations, Nvidia's CEO Jensen Huang provided an optimistic outlook for the company’s future. The AI hardware leader reported non-GAAP earnings of $2.22 per share on revenue of $96.22 billion — well above analyst estimates. However, it was the forward guidance and business commentary from Huang that stood out most. Huang projected a 70% annual sales growth for fiscal year 2028, significantly higher than the average analyst estimate of 44%. He also expects gross margins to improve to between 72% and 73%, despite supply-constraint headwinds. The CEO highlighted strong momentum in new product lines like Vera Rubin GPUs and CPUs, which are expected to drive substantial revenue growth. The company is expanding its AI compute stack beyond GPUs into central processing units (CPUs) and networking technologies. Huang anticipates CPU revenue will more than double next year, positioning Nvidia as a leading supplier in the server CPU market.
Tickers: $NVDA
Topics: AI Hardware Earnings Growth Guidance Margins