Nvidia projects 70% revenue growth in 2028

Nvidia announced a projected 70% revenue growth for its next fiscal year, causing its stock to rise in after-hours trading. This projected growth has significant implications as Nvidia is seen as a benchmark for the overall AI industry. However, recently, Nvidia's stock has been falling behind the semiconductor sector in terms of market gains.

In its last quarter, Nvidia surpassed revenue and earnings forecasts. Despite an initial drop in stock value following the report, it rebounded after CFO Colette Kress presented the revenue estimate during an earnings call. Kress stated that supply constraints could limit Nvidia's ability to double its revenue next year.

Financially, Nvidia reported $96.2 billion in revenue in its latest quarter, a more than double increase from the previous year. Net income also surged by 126%, reaching $59.7 billion, which exceeded analysts' expectations of $92.1 billion in revenue and $51.2 billion in earnings for the period ending July 26. Data center revenue, Nvidia's primary sales source, grew by 117% to $89 billion.

The company predicted revenue of $108 billion for its upcoming reporting period, plus or minus 2%, marking its first time exceeding $100 billion in a single quarter.

Nvidia's earnings report follows several investments and financial moves aimed at boosting the AI economy and expanding its customer base. This includes a recent deal to support an OpenAI data center. While these investments highlight concerns about a circular financing risk in the AI economy, CEO Jensen Huang has dismissed these worries. However, the stock experienced a seven-day losing streak by Monday.

In a statement, Huang expressed optimism about the AI infrastructure growth, noting that it is at full speed. He emphasized the proliferation of new AI labs and startups, a thriving open-model ecosystem, and the physical AI development occurring across the U.S. and globally. The story was updated with details from Nvidia's earnings conference call.