Nvidia expects fiscal 2028 sales to rise 70%, but management says demand alone could double that growth if supply constraints eased. The chipmaker's market cap has already climbed 445% over three years to $5.5 trillion, and executives point to agentic AI as the next driver of demand.
Demand outpaces the official forecast
Nvidia's market cap has risen 445% in three years to $5.5 trillion, making it the most valuable company in the world. In its fiscal 2027 second-quarter report, management forecast fiscal 2028 sales growth of 70%, citing continued demand for AI chips.
Nvidia leadership went further, saying it could double its sales in fiscal 2028 if it could overcome constraints on the commodities needed to produce its hardware. Demand, in other words, is already running ahead of the company's own guidance.
By comparison, Apple's market cap sits just under $5 trillion, and its revenue grew 16% in the third quarter to $109 billion.
Agentic AI pushes compute needs higher
Agentic AI is replacing human-generated prompts as the main driver of workload growth, The Motley Fool reports. According to Nvidia CEO Jensen Huang: "the amount of compute necessary is just extraordinary", because AI agents use between 15 and 100 times as much compute as a human-guided task would require.
S&P Global separately forecast that tech companies will spend an estimated $1.3 trillion on AI next year.
Supply, not demand, is the constraint
Nvidia isn't alone in struggling to keep up with orders. Micron Technology's memory chips face the same imbalance, which has pushed memory prices higher and boosted Micron's margins amid global supply constraints.
Nvidia says it is working to increase supply to meet customer demand. If it succeeds, fiscal 2028 sales could double instead of rising 70%.
Source: The Motley Fool
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