Nvidia posted quarterly revenue of $96.22 billion, up 106% year over year, and CEO Jensen Huang says customer demand points to chip sales doubling next year. Supply constraints, especially in high-bandwidth memory, mean Nvidia likely can't deliver on all of that demand through fiscal 2028.
Nvidia posted quarterly revenue of $96.22 billion, up 106% from the same quarter a year ago, and CEO Jensen Huang says even that may not be enough to satisfy the appetite for AI chips. Huang told investors during the company's fiscal Q2 2027 earnings call on August 26 that customer demand forecasts point to chip sales doubling next year. The catch: Nvidia probably won't be able to deliver on all of it, because the supply chain can't keep up.
The numbers behind the confidence
Nvidia's data center business generated $89 billion in revenue during the quarter, a 117% year-over-year increase that accounts for essentially all of the company's growth. For the current quarter, Nvidia guided revenue of approximately $108 billion, give or take 2%. For the full fiscal year 2028, ending January 2028, the company projected about 70% year-over-year growth.
Huang reiterated these figures at a September conference, expressing confidence that Nvidia could hit 70% annual growth, while noting that underlying customer demand suggests something closer to a full doubling. CFO Colette Kress said during the earnings call that supply constraints, particularly in high-bandwidth memory, are expected to persist through the end of fiscal 2028.
Demand spreads beyond the hyperscalers
Emerging AI labs, sovereign AI initiatives run by national governments, and enterprise customers across industries are all placing orders, broadening Nvidia's demand base beyond hyperscalers like Amazon, Microsoft, and Google. Nvidia announced a partnership with AWS to deploy an additional 2 million GPUs over 2027 and 2028.
A supply problem that won't clear soon
Nvidia's margins are expected to stabilize around 71-72%, but memory pricing pressures tied to HBM scarcity could chip away at that figure over time. The company depends on partners SK Hynix and Samsung to manufacture the HBM modules its chips need, so when demand outstrips memory production capacity, prices rise and squeeze margins. Growing 70% when customers want 100% leaves revenue on the table.
Source: Crypto Briefing
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