Nvidia forecast 70% revenue growth for its next fiscal year, far above the 44% analysts had projected, while warning memory shortages will keep limiting how fast it can expand. Shares rose nearly 5% in extended trading after an initial dip.
Nvidia forecast a 70% jump in revenue for its next fiscal year, ending January 2028, well above the 44% growth analysts had projected on average. The chip maker rarely issues year-ahead guidance, and the outlook is likely to reassure investors questioning how long AI spending can keep climbing.
Shares rose nearly 5% in extended trading, reversing an initial dip of more than 1%. According to Nvidia: "We've never forecast or never guided to a year in advance," Chief Executive Jensen Huang said.
Data center demand keeps broadening
In its fiscal second quarter ended in July, data center revenue more than doubled to $89 billion, beating estimates of $85.08 billion. Nvidia's Vera Rubin platform, now shipping to customers, will account for about a fifth of overall data center revenue this quarter, which ends in October.
The so-called neo-clouds, including Nebius and CoreWeave, are set to exit this year with more than eight gigawatts of Nvidia GPU capacity, up from three gigawatts at the end of last year. Nvidia also expanded its partnership with Amazon Web Services, and the two will deploy an additional 2 million Nvidia graphics processors across Amazon's infrastructure in 2027 and 2028.
Supply limits and margin pressure
Even so, finance chief Colette Kress told analysts the company remains supply-constrained even as customer forecasts point to growth doubling next year. Soaring memory prices and higher component costs will keep pressuring margins, which Kress said will bottom in the fourth quarter at roughly 71% to 72%, down from about 74% in the third quarter. Nvidia forecast third-quarter revenue of $108 billion, plus or minus 2%, versus an average analyst estimate of $104.19 billion.
China sales remain unresolved
Nvidia's outlook did not include China data center revenue. Washington cleared roughly ten Chinese firms, including Alibaba, Tencent and ByteDance, to buy the H200 chip in May, though deliveries stalled for months. A U.S. Commerce Department official said last month that shipments had begun but remained limited.
Nvidia's second-quarter revenue more than doubled to $96.22 billion, beating estimates of $92.17 billion. Adjusted profit came in at $2.22 per share, against estimates of $2.10.
Source: Investing.com
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