Nvidia CFO Colette Kress told analysts the company expects 70% revenue growth in fiscal 2028, well above the 44% Wall Street had projected. The guidance follows Amazon's order of 2 million Nvidia GPUs and comes as Nvidia's own sales growth has been accelerating quarter over quarter.
Nvidia CFO Colette Kress told analysts on the company's fiscal 2027 second-quarter earnings call that Nvidia expects 70% year-over-year revenue growth in fiscal 2028, a figure far above the 44% Wall Street had forecast. Companies rarely offer guidance two years out, which makes the forecast unusual on its own.
Kress added that the 70% figure reflects supply constraints, and that absent bottlenecks in the supply chain, revenue could more than double year over year in fiscal 2028.
Amazon adds to Nvidia's order book
Amazon, one of Nvidia's top customers, agreed to buy 2 million Nvidia GPUs for delivery across 2027 and 2028, adding credibility to the fiscal 2028 forecast. Nvidia's new Vera Rubin architecture, which combines CPUs and GPUs, has started shipping, and its sales impact will show up in fiscal 2028, which begins Jan. 31, 2027.
Tech giants including Amazon voiced enthusiasm for the Vera Rubin platform when Nvidia announced it in a January press release. According to the release: "Rubin will remind the world that Nvidia is the gold standard," Elon Musk said.
Samsung has also locked in contracts for 70% of its memory chip capacity through 2031. A strong memory market is good for Nvidia, since its GPUs are the foundation of the AI boom.
Growth has already been accelerating
Nvidia's revenue more than doubled year over year in its fiscal 2027 second quarter, the quarter that ended July 31. That marks an acceleration for a company of Nvidia's size, where growth would typically be expected to slow.
Revenue grew 65% in fiscal 2026. It then rose 85% year over year in its fiscal 2027 first quarter, before growth reached 106% in the fiscal 2027 second quarter. Looking ahead, Nvidia's fiscal 2027 third-quarter guidance implies 12% sequential growth at the midpoint, with Vera Rubin still ramping toward full production.
Source: Motley Fool
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