Nvidia Projects 70% Revenue Growth Amid AI Demand Surge

Nvidia has announced a significant forecast of 70% revenue growth for fiscal 2028, driven by the accelerating demand for AI infrastructure. The chipmaker reported a staggering $96.2 billion in revenue for Q2 fiscal 2027, marking a 106% increase compared to the same period last year.

In this quarter, Nvidia's data center segment alone generated $89 billion, reflecting a 117% year-over-year growth and accounting for approximately 92% of the company's total sales. CEO Jensen Huang and CFO Colette Kress highlighted the diversification of their customer base, noting that non-hyperscale clients now represent about half of their business, with this segment growing nearly 100% year-over-year.

If Nvidia achieves its ambitious growth target, it could reach around $673 billion in revenue by fiscal 2028, positioning it as the second-largest technology company in the U.S. by revenue, trailing only Amazon. This growth trajectory is particularly noteworthy given that Nvidia's annual revenue was around $27 billion in fiscal 2023.

Despite the positive outlook, Nvidia anticipates gross margins will stabilize between 71% and 72% due to rising memory costs associated with high-bandwidth memory (HBM) required for its latest AI chips. The company faces supply constraints, particularly in memory, which could impact its ability to meet demand.

Looking ahead, the growth in non-hyperscale customers is a crucial indicator of the shift towards production-level AI workloads, suggesting that enterprises outside of major tech companies are increasingly investing in AI capabilities.