Five thoughts on Nvidia’s quarter — and what it means for enterprise IT buyers
Nvidia Corp. delivered another mind-boggling quarter Wednesday. Total revenue reached $96 billion, up more than 100% year over year, with data center revenue at $89 billion and a third-quarter guide of $108 billion. More striking than the quarterly numbers was the guidance Chief Financial Officer Colette Kress dropped midway through the call: Fiscal 2028 revenue […] The post Five thoughts on…
Five key takeaways from Nvidia's recent financial quarter and their implications for enterprise IT buyers:
1. Nvidia's revenue surged 100% year-over-year to $96 billion, with data center revenue reaching $89 billion. CFO Colette Kress projected fiscal 2028 revenue to grow approximately 70%, driven by persistent AI demand and supply constraints.
2. Nvidia reframed the AI demand as a logistics question, emphasizing that supply constraints will remain through the end of fiscal year 2028. The company's CEO, Jensen Huang, stated that supply won't arrive suddenly but will be added daily.
3. Nvidia's strategic focus has shifted from selling chips to providing a full-stack AI factory platform. This includes CPUs like Vera Rubin, GPUs like Grace Blackwell, and networking solutions like Spectrum-X Ethernet, which have all shown significant revenue growth.
4. The non-hyperscaler segment, which includes neoclouds, sovereigns, enterprises, and edge data centers, grew to $40 billion in the quarter, up 25% sequentially and 138% year-over-year. This segment is expected to represent roughly half of Nvidia's data center business.
5. Nvidia's pricing strategy emphasizes the value of a multi-year commitment, with the company offering named-quantity contracts and fallback tiers. This approach, which contracts certainty over short-term discounts, is crucial in a supply-constrained market.
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