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Nvidia projected about 70% revenue growth for fiscal 2028, rebuffing market concerns that the surge in artificial intelligence spending is starting to lose steam.
Bloomberg reported on Aug. 26 that Chief Financial Officer Colette Kress said on a conference call following the company’s second-quarter earnings release that Nvidia expects fiscal 2028 revenue to grow about 70%. That is well above the roughly 45% consensus estimate compiled by Bloomberg. Kress added that growth would have been even faster if supply had been sufficient, and said customer outlooks suggest the pace could accelerate further next year.
The company also beat market expectations in its latest results. Second-quarter revenue for the period ended July 26 more than doubled from a year earlier to $96.2 billion, topping the $92.5 billion estimate. Adjusted earnings per share were $2.22, above the $2.09 forecast. Revenue from Nvidia’s core data center business came to $89 billion, exceeding the $85.8 billion expectation.
Nvidia forecast revenue this quarter of $108 billion, plus or minus 2%. That compares with a market estimate of $105.2 billion. It projected gross margin of about 74%. Chief Executive Officer Jensen Huang said AI infrastructure buildout is moving ahead at full speed and that the company’s latest AI chip family, Vera Rubin, has entered full-scale production.
Markets have recently questioned whether massive AI investment is sustainable. Nvidia’s series of investment deals with AI companies has also drawn criticism that circular financing could be creating artificial demand. The company, however, maintains that broader AI adoption will generate additional demand for its products.
Still, a shortage of memory semiconductors and efforts by big technology companies to develop their own AI chips remain key variables. Demand for memory used in AI computing has surged, driving prices higher, and Nvidia has raised prices on some products to reflect higher costs. The expansion of in-house chip development by Nvidia’s major customers is also a long-term competitive factor.
Nvidia shares rose more than 4% in after-hours trading following the earnings release.
