Nvidia expects the AI computing boom to remain strong for years, with the chipmaker forecasting a 70% rise in revenue next fiscal year. The company also warned that shortages of memory components will limit how quickly it can expand.
Nvidia shares rose nearly 5% in extended trading after initially falling more than 1%.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” Nvidia CEO Jensen Huang said.
The forecast is expected to ease concerns over how long the surge in AI spending can continue. Nvidia expects demand from major technology companies and AI labs to keep expanding rather than peak, although supply constraints could limit the business it can capture.
The company outlined its growth roadmap, including the rollout of its next-generation Vera Rubin processors and higher sales to AI labs such as OpenAI.
The 70% revenue growth forecast for the fiscal year ending January 2028 is unusual for Nvidia, which generally does not provide projections a year ahead. “We’ve never forecast or never guided to a year in advance,” Huang said. Analysts had expected 44% growth for the same period.
Nvidia said its Vera Rubin platform, which has started shipping, will contribute about 20% of data centre revenue in the quarter ending October.
For the fiscal 2nd quarter ended July, data centre revenue more than doubled to $89 billion, beating the $85.08 billion estimate. Nvidia expects AI labs to account for roughly 25% of its overall business next year.
Neo-cloud companies such as Nebius and CoreWeave are expected to exit the year with more than 8GW of Nvidia GPU capacity, up from 3GW at the end of last year.
Nvidia also expanded its partnership with Amazon Web Services. The companies plan to deploy an additional 2 million Nvidia GPUs across Amazon’s global infrastructure in 2027 and 2028.
“We are seeing demand acceleration even at our scale. Customers’ forecasts point to our growth doubling next year. However … we are supply-constrained,” CFO Colette Kress said.
Rising memory and component costs are expected to pressure margins. Kress said margins could fall to about 71% to 72% in the 4th quarter from around 74% in the 3rd quarter. Analysts expected 74.77% for the 3rd quarter.
Nvidia forecast 3rd-quarter revenue of $108 billion, plus or minus 2%, above the $104.19 billion analyst estimate.
China chip sales remain uncertain
Nvidia did not include China data centre revenue in its outlook. Although the US had cleared around 10 Chinese companies to purchase H200 chips in May, deliveries were delayed. Nvidia began promoting its Vera CPU to Chinese customers in June, with availability indicated for August. A US Commerce Department official later said shipments had begun but remained “very few.”
Nvidia reported 2nd-quarter revenue of $96.22 billion, above the $92.17 billion estimate. Adjusted profit was $2.22 per share, compared with the $2.10 estimate.
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