Nvidia's 70% Revenue Forecast Meets Memory Supply Constraint

Nvidia's rare year-ahead revenue forecast put a 70 per cent growth target next to a warning that memory shortages and component costs can still limit how much AI demand becomes sales, The National reported after the chipmaker's latest quarterly results.

The projection covers the fiscal year ending in January 2028 and sits well above the 44 per cent growth analysts had expected for the same period.

After an initial decline of more than 1 per cent, the stock gained almost 5 per cent in after-hours trading, giving investors a sharper signal than the company's usual quarterly guidance.

Jensen Huang, Nvidia's chief executive, tied the outlook to broader use of AI computing, saying AI had reached an inflection point and that compute now translates into revenue.

Nvidia had not previously guided a year in advance.

The data-centre business remains the main engine.

Revenue from that division more than doubled to $89 billion in the fiscal second quarter ended in July, above LSEG estimates of $85.08 billion, while companywide revenue reached $96.22 billion, also more than twice the year-earlier level.

Adjusted profit reached $2.22 a share for the period that closed on July 26.

Vera Rubin, Nvidia's next-generation processor platform, has started shipping to customers and is expected to make up about a fifth of overall data-centre revenue in the current quarter ending in October.

AI labs such as OpenAI are expected to contribute roughly a quarter of the company's overall business next year.

Neo-cloud providers including Nebius and CoreWeave are projected to finish the year above 8 gigawatts of Nvidia GPU capacity, compared with 3 gigawatts at the end of last year.

Amazon Web Services adds another deployment lane.

Nvidia and AWS plan to install an additional 2 million Nvidia graphics processors across Amazon's global infrastructure in 2027 and 2028, extending demand beyond model developers into the cloud platforms that sell compute capacity to enterprise and AI customers.

For Shay Boloor, chief market strategist at Futurum Equities, the forecast looked more credible because demand was widening beyond the original hyperscalers to AI clouds, enterprises, sovereign buyers and industrial customers.

That customer mix gives the company more than one route to growth, but it does not remove the supply limit.

On the earnings call, finance chief Colette Kress described customer forecasts that pointed to growth doubling next year while Nvidia remained supply-constrained.

Higher memory prices and component costs are expected to pressure margins, with fourth-quarter margins bottoming at roughly 71 per cent to 72 per cent, down from about 74 per cent in the third quarter.

The company forecast third-quarter revenue of $108 billion, plus or minus 2 per cent, compared with an average analyst estimate of $104.19 billion.

China remains outside that outlook: Nvidia did not include China data-centre revenue after US approval opened H200 purchases to about 10 Chinese companies, among them Alibaba, Tencent and ByteDance.

A US Commerce Department official later put the early shipment level at "very few."