Nvidia says it would be making a whole lot more money if it weren't for the memory crisis it's contributing to
And gaming doesn't even get a mention in its earnings call.
Nvidia disclosed its latest earnings during a recent call, revealing a massive 70% projected revenue growth for the 2028 fiscal year. However, this optimistic projection is hindered by a memory crisis that is exacerbating the situation. CEO Jensen Huang confirmed that this 70% figure represents a constrained number, citing the scarcity of available memory in the market.
He emphasized that the unconstrained revenue potential would be significantly higher, attributing a 100% year-over-year growth to Nvidia this year. Despite this, Nvidia's financials demonstrate a strong performance, with data centers accounting for the majority of revenue, totaling $89 billion, a 117% increase from the previous year.
Edge Computing, which includes gaming, workstations, physical AI PCs, and robotics, grew by 27% year-over-year, reaching $7.1 billion. However, gaming revenue is not separately reported, as it is consolidated under Edge Computing. Nvidia's gross margin stands at an impressive 75%, but the company acknowledges that rising component costs, particularly in memory, have exceeded their initial expectations and are projected to continue rising.
Huang highlighted that while the company has secured a substantial supply chain through its vast network of partners, more capacity is urgently needed to address the memory crisis affecting the entire industry, including competitors like Samsung.
Written by urgent.news from PC Gamer's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
