Nvidia projects $673B in sales as AI demand widens

Nvidia anticipates a staggering 70% growth in fiscal year 2028, projecting annual sales of approximately $673 billion. This forecast, disclosed by CFO Colette Kress on August 26, 2026, surpasses Wall Street's consensus for fiscal year 2027 by a significant margin and would place Nvidia ahead of tech giants Apple and Alphabet in revenue. It is the first time Nvidia has provided a forecast this far into the future, a change from their previous practice of offering shorter-range estimates.

The growth projection is based on impressive first-quarter results, with fiscal year 2027 revenue reaching $96.2 billion, more than double the previous year's figure. Data-center revenue alone soared 117% to $89 billion. This performance set the stage for the optimistic outlook, as Nvidia's shares surged by around 4% in extended trading following the earnings release.

However, supply constraints are now limiting Nvidia's ability to project higher sales. CEO Jensen Huang acknowledged that shortages in components, such as memory, have prevented a further increase in the projected revenue. Despite this, Huang remains optimistic about Nvidia's role in the expanding AI infrastructure market. He believes demand is growing beyond just hyperscalers and will involve a broader set of customers, including regional AI companies, neocloud providers, startups, and conventional enterprises.

This group, referred to as ACIE, will be served by Nvidia's comprehensive data-center stack, making the company a more comprehensive infrastructure partner for organizations that may not have the resources to assemble the necessary systems themselves.

Huang emphasized that Nvidia's technology can supply much of the data-center stack, positioning the company as a broader infrastructure provider for businesses that cannot build their systems. This customer base spread across various segments could alleviate dependence on any single hyperscaler's capital budget and open up more opportunities for Nvidia to sell networking, systems, and other data-center components alongside its processors.

Nvidia's growth is also impacting European semiconductor stocks, with companies like ASML, STMicroelectronics, Infineon Technologies, and BE Semiconductor experiencing gains due to investor confidence in continued spending on AI infrastructure equipment and components. Despite these positive developments, the company's financing strategy has raised concerns about potential circular financing, where Nvidia's support for customers or infrastructure may funnel money back to the company through purchases of its products.

Huang defended this approach, arguing that frontier AI companies often require substantial capital before they can secure low-cost financing, and many are not investment-grade or lack the operating history to ensure favorable borrowing terms.