Nvidia Forecasts 70% Revenue Growth in Fiscal 2028, Citing Unconstrained AI Demand
Source: Bloomberg Television · All Bloomberg Television reports
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Summary
The Bloomberg segment reported Nvidia's Q2 FY2027 earnings, highlighting record revenue of $96.2 billion (up 106% year-over-year) driven by data center sales of $89 billion. It focused on the company's unprecedented guidance for approximately 70% revenue growth in fiscal 2028—well above Wall Street expectations of around 45%—and CEO Jensen Huang's statements that demand is accelerating across hyperscalers, enterprises, sovereigns, and AI labs. The report covered supply constraints limiting even faster growth, rising memory costs pressuring margins (expected to bottom at 71-72% before recovering), planned price increases, and Nvidia's rebuttal to "circular financing" concerns regarding its investments in AI companies.
Sourcing relied on direct quotes and details from the earnings call with Huang and CFO Colette Kress. No anonymous sources or external graphics were used; the throughline emphasized Nvidia's central role in the ongoing AI boom with no signs of slowdown.
Editorial Assessment
The broadcast accurately conveyed Nvidia's exceptional results and forward guidance, which were corroborated across multiple outlets including Reuters, CNBC, and the company's own release. Claims on the 70% growth target, higher-than-expected analyst models, supply-constrained demand (with customer forecasts implying doubling), memory-driven margin pressure, and pushback on circular financing match the earnings call transcript closely. Viewers receive a clear picture of sustained AI infrastructure demand broadening beyond traditional hyperscalers.
What is somewhat missing is fuller context on execution risks: fiscal 2028 is still more than a year away, gross margins are declining in the near term, and some analysts (e.g., S&P Global) project lower growth in later years. The enthusiastic tone around "no slowdown" could skew perception toward certainty, when the outlook remains supply- rather than demand-limited and subject to macroeconomic or geopolitical factors such as China restrictions. Overall, high-quality financial journalism that prioritizes primary statements from management.
Key Moments
Nvidia guided to 70% revenue growth in fiscal 2028, versus Wall Street expectation of 45%
Matches Nvidia earnings release, CFO Kress comments, and consensus figures reported by Reuters, Bloomberg, and CNBC; implies roughly $670-700B revenue on ~$396-400B FY2027 base.
Absent supply constraints, Nvidia's business would be growing even faster, potentially doubling
Direct from Kress and Huang on the call: customer forecasts point to doubling, but supply (especially memory) limits delivery to 70%; entire supply chain running flat out.
Margins impacted by higher memory chip costs; Nvidia will raise prices starting next fiscal year
Kress stated margins bottom at 71-72% in Q4 FY2027 due to "extreme" memory pricing exceeding expectations, recovering to 72-73% in FY2028 after price hikes.
Nvidia investments in AI companies are not circular financing; frontier labs will continue using Nvidia systems long-term
Kress explicitly rebutted the characterization on the call; Huang said economics favor Nvidia platforms and expressed regret over not investing more, with AI labs expected to represent ~25% of business.
AI spending shows no signs of losing momentum; Nvidia is at the heart of it
Accurately reflects management's view and current results, but forward 70% guidance is supply-constrained and long-range projections carry execution and macroeconomic risks not fully detailed.
Notable Concerns
- Slight overstatement of "doubling" without clarifying it applies to customer forecasts rather than confirmed shipments
- Enthusiastic framing downplays near-term margin compression to 71-72%
Sources Consulted
- NVIDIA Announces Financial Results for Second Quarter Fiscal 2027
- Nvidia forecasts 70% sales growth next year, signals AI spending boom has years left to run
- Nvidia 70% growth forecast puts it on track to be tech No. 2 company
- Nvidia Predicts AI-Fueled Sales Surge Will Extend Into 2028
- Nvidia gave its first-ever year-ahead forecast—a 70% growth bombshell
- NVIDIA Q2 FY2027 Summary
- Nvidia projects 70% sales growth next year as it rebuts ‘circular financing’ criticism