Nvidia forecasts quarterly revenue above estimates, shares rise

Nvidia announced on Aug 26 that its quarterly revenue more than doubled and projected third-quarter revenue to exceed Wall Street estimates, indicating continued demand for its AI chips. The company expects fiscal 2028 revenue growth of around 70 percent and expanded its partnership with Amazon Web Services by adding 2 million Nvidia GPUs to Amazon’s global infrastructure in 2027 and 2028.

Nvidia's shares jumped more than 4 percent in after-hours trading following the news. The AI market leader’s results are considered a bellwether for the industry, as its chips power major data centers and advanced AI models worldwide. Nvidia’s growth comes as Big Tech firms, including Microsoft and Meta, plan to spend over $730 billion on AI infrastructure this year, a significant increase from last year’s $400 billion.

However, some tech companies are shifting towards in-house chip efforts to reduce reliance on Nvidia’s costly and supply-constrained processors. Nvidia expects its adjusted gross margin for the third quarter to be around 74 percent, closely watched by analysts as they may face pressure from production ramp of Rubin chips and higher memory prices in the silicon supply chain.