NVIDIA Projects 70% Revenue Growth in FY28 Amid Supply Constraints
NVIDIA forecasts a 70% revenue increase for FY28, anticipating earnings between $690 billion and $700 billion. Key drivers include AI compute expansion and a growing customer base despite ongoing supply chain challenges.
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NVIDIA anticipates a 70% revenue growth for FY28, projecting earnings of $690-$700 billion, significantly surpassing analyst estimates of $570 billion. The company reported Q2 FY27 revenue of $96.2 billion, a 106% increase year-over-year, and expects Q3 revenue to reach approximately $108 billion.
CEO Jensen Huang noted that demand is strong from both hyperscale and non-hyperscale cloud providers, with the latter segment growing at 100% annually. However, supply constraints, particularly related to memory components, may limit growth potential.
Despite this, NVIDIA's aggressive investments in AI infrastructure and partnerships, including a significant expansion with Amazon Web Services, position it for substantial future revenue. The market response to the growth forecast remains cautiously optimistic, yet concerns about supply chain limitations persist.
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