Nvidia didn't like Wall Street's estimates. So it tried to reset them.

Nvidia (NVDA) found Wall Street's estimates for its future revenue growth to be unimpressive. The company explained that its decision to provide an out-year outlook was primarily driven by a significant disparity between Street estimates and its internal expectations, which could have posed supply-chain planning difficulties for its partners.

JPMorgan analyst Harlan Sur reported this during a meeting with Nvidia's executives after Nvidia's stock had been stagnant for most of the summer due to concerns over peak artificial intelligence growth. Consequently, Nvidia took a bold step by unveiling a rare long-term outlook that surpassed market expectations. The company projected a 70% revenue growth for fiscal year 2028, which was higher than analysts' forecasts of 45% growth.

However, this growth would be even more substantial if not for memory chip shortages, as stated by Nvidia CEO Jensen Huang. The 70% Y/Y growth outlook was attributed to broad-based improvements in demand and visibility. Sur emphasized that Nvidia remains content with this ambitious growth framework. Surprisingly, the Street remains skeptical of Nvidia's fiscal year 2028 revenue growth, with Yahoo Finance analyst estimates averaging 63% year-over-year revenue growth for the company in fiscal year 2028, which is lower than Nvidia's 70% target.

Despite this, Nvidia delivered strong results in its fiscal second quarter, with adjusted earnings per share of $2.22 on revenue of $96.2 billion, surpassing both the $2.09 per share and $92.3 billion revenue expected by Wall Street. Nvidia's Data Center revenue, including Hyperscalers and AI Clouds, Industrial, and Enterprise segments, stood at $89 billion, exceeding the projected $85.8 billion.

Meanwhile, the Edge Computing segment, encompassing other businesses like physical AI and gaming, generated $7.2 billion, beating the Street's $6.6 billion estimate. Analysts were astonished as Nvidia's fiscal third quarter revenue projection of between $105.8 billion and $110.1 billion marked the first quarter above $100 billion in revenue for the company, according to Stifel analyst Ruben Roy.