Nvidia Predicts AI-fueled Sales Surge Will Extend Into 2028

By Bloomberg Technology

Categories: Startup, VC, AI

Summary

Nvidia shattered Wall Street expectations by forecasting 70% revenue growth through fiscal 2028—25 points higher than analyst predictions—signaling sustained AI infrastructure demand with no slowdown in sight. Supply constraints are the only brake on even faster growth.

Key Takeaways

  1. Nvidia guided 70% fiscal 2028 revenue growth vs. Wall Street's 45% expectation, a 56% upside miss. This rare full-year outlook signals CEO confidence in sustained demand.
  2. Supply chain constraints are limiting Nvidia's growth potential—leadership explicitly stated demand would drive even faster scaling if production capacity existed, suggesting market pull exceeds supply.
  3. Nvidia is raising prices starting next fiscal year due to higher memory chip costs impacting margins. Founders should expect AI compute costs to increase and budget accordingly.
  4. Frontier AI labs investing in custom chips won't displace Nvidia—Jensen Wong noted their chip economics remain superior and expects labs to use Nvidia compute long-term. Vertical integration won't commoditize the platform.
  5. Universal compute demand across all sectors is driving growth—Jensen stated everyone needs more compute. This isn't concentrated in LLMs but spans enterprise, inference, and emerging applications.

Related topics

Transcript Excerpt

Nvidia just did something it never does. It gave us a full fiscal year growth outlook. Revenues will grow 70% in fiscal 2028. And what is astonishing about that is Wall Street went into this earnings thinking that revenues would grow 45% in fiscal 2028. And what's more, you have Jensen Wong, the CEO of Nvidia, and Colette Crest, the CFO, explaining that if it weren't for supply constraints, their business would be growing even faster. So, it's not just rare for them to come out and say, "This is what's going to happen." It's that were it not for supply chains and things outside of Nvidia's control, their business would be doubling. Jensen One got a lot of questions about what is driving that growth. And he basically said it's everything. Everyone needs more compute. Now, Nvidia is not with…

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