Nvidia forecasts 70% sales growth, crushing estimates

Nvidia reported fiscal Q2 2027 revenue of $96.2 billion on August 26, up 106% from the same period a year ago, and issued its first-ever full-year guidance, projecting roughly 70% growth for fiscal 2028, well above the 44% analysts had expected, CryptoBriefing reported. The stock jumped more than 4% in after-hours trading.

Nvidia's data center segment pulled in $89 billion during the quarter, up 117% year over year and accounting for roughly 92% of total company sales. CEO Jensen Huang and CFO Colette Kress pointed to diversification within that demand as the signal that matters most: non-hyperscale customers, companies outside Microsoft, Google, and Amazon, now make up about half of Nvidia's business and are growing at nearly 100% year over year. When enterprise buyers outside Big Tech start spending at that pace, it tends to mean AI workloads are moving from pilot projects into production.

• Q2 fiscal 2027 revenue: $96.2 billion, +106% year over year
• Fiscal 2028 growth guidance: ~70%, vs. 44% analyst consensus
• Data center segment revenue: $89 billion, +117% year over year
• Implied fiscal 2028 revenue if guidance holds: ~$673 billion
• Gross margin guidance: 71-72%, versus roughly 45% at Apple

If Nvidia hits that 70% target, implied revenue for fiscal 2028 would land near $673 billion, enough to make it the second-largest technology company in the US by revenue, behind only Amazon. The company's annual revenue sat around $27 billion for fiscal 2023. Scaling from there to a potential $673 billion within five fiscal years would rank among the fastest revenue climbs in corporate history, in any industry, a scale Intokened examined this morning when we looked at how much of the S&P 500's earnings now flow through a handful of stocks like Nvidia.

The one constraint working against that trajectory is supply, not demand. Nvidia expects gross margins to stabilize around 71-72%, compressed by the cost of high-bandwidth memory its latest AI chips require, memory that Samsung, SK Hynix, and Micron are all racing to produce more of. Nvidia's guidance beat of 70% against a 44% consensus is among the widest gaps between company outlook and analyst expectations on record for a company this size, and it lands the same week Nvidia moved to spend part of that scale on a $12.9 billion deal for Hugging Face. Huang and Kress also flagged that Nvidia's newest chips could sell faster than the company can currently build them, given how tight HBM supply remains.

This article is for informational purposes only and does not constitute investment advice.