Jensen Huang Just Sent a Signal That Could Matter More Than the September Effect
Key PointsNvidia expects fiscal 2028 revenue growth of about 70%, even though customer forecasts point to stronger demand.
Historically, September has been a challenging month for Wall Street. Over the past century, from 1926 to 2024, the S&P 500 has typically declined by around 1.1% during this period. However, Nvidia's stock (NASDAQ: NVDA) has bucked this trend, with the company's shares gaining in seven out of the last ten Septembers, boasting a median return of approximately 1.5%.
This suggests that while the September Effect might warrant some caution regarding the broader market, it hasn't necessarily been a red flag for Nvidia's stock performance.
Recently, Nvidia's CEO, Jensen Huang, provided an even more significant signal for investors. During an earnings call, Huang announced that the company expects revenue to surge about 70% in its fiscal year 2028, which commences on January 31, 2027. While this figure appears impressive, Huang emphasized that this projection does not capture the full extent of demand for Nvidia's products.
The limitation, according to management, lies in the constrained supply of essential components needed to construct Nvidia's artificial intelligence (AI) platforms.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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