Nvidia, the manufacturer of high-performance chips, anticipates for its next fiscal year (2027/2028) an increase in its revenues "of approximately 70%", driven by the strong demand for AI solutions that is accelerating the construction of new technological infrastructures worldwide. However, the most valuable company on the planet has warned that this scenario will be "subject to supply constraints".
In a conference with analysts after presenting its quarterly results, Colette Kress, executive vice president and chief financial officer of Nvidia, provided an initial forecast that the revenue for the next fiscal year "will grow approximately 70% year-on-year". Kress clarified that the company will try to narrow the gap between supply and demand, although she expects that "supply will continue to be a bottleneck at least until the end of fiscal year 2028".
"Surprisingly, we are seeing an acceleration of demand even at our scale. Our customers' forecasts indicate that our growth will double next year," Kress stated, emphasizing that "the surge in AI demand is driving the development of infrastructures globally." As she explained, this pull comes from an increasingly broad range of customers: large cloud service providers, AI labs, digital-native companies, multinationals, and public administrations.
The executive argued that "greater processing capacity generates higher revenues" as new GPU capacity is added, and highlighted that Nvidia's main cloud customers recorded a very solid quarter, with rapidly expanding revenues and rising margins. In this context, the cloud industry has a backlog of orders that exceeds 2 trillion dollars (1.7 trillion euros), while it is projected that the capital investment of the five largest cloud service providers will approach 800 billion dollars (686.019 billion euros) in 2026 and reach around 1.3 trillion dollars (1.1 trillion euros) in 2027.
For his part, Jensen Huang, founder and CEO of Nvidia, recalled that the company "never before had made forecasts or projections a year in advance," but that now it has much greater visibility both over its supply chain and over distribution. "Although our demand far exceeds 70%, our supply allows us to meet that percentage with confidence," Huang pointed out, emphasizing that Nvidia will continue to work closely with its manufacturing partners to expand the available capacity.
Regarding the doubts about the evolution of gross margins, in an environment of strong increases in component costs, the financial director acknowledged that the company faces "extreme pricing conditions" in the memory market and that the increase in costs "has exceeded our previous expectations and is expected to continue rising next year." In her opinion, "the current memory shortage is largely due to the development of AI, and unlike a component that simply increases our costs without any compensatory benefit, the lower supply of memory is a symptom of the same increase in demand that drives our own growth."
Doubles profit and revenue in the quarter
In the second quarter of its fiscal year, from May to July, Nvidia recorded a net profit of 59.688 billion dollars (51.156 billion euros), which implies a 126% increase in earnings compared to the same period of the previous year. Revenues amounted to 96.221 billion dollars (82.467 billion euros), 106% more than a year earlier and 18% above those obtained in the first quarter.
The data center division was the main driver of the business, contributing 89.000 billion dollars (76.278 billion euros) between May and July, a 117% year-on-year increase. For its part, the computing branch generated 7.200 billion dollars (6.170 billion euros), an increase of 27% compared to the previous year.
In the accumulated first half of the fiscal year, the company led by Jensen Huang achieved a net profit of 118.110 billion dollars (101.227 billion euros), representing a growth of 161.3% compared to the same period of the previous year. Revenue in those six months stood at 177.837 billion dollars (152.417 billion euros), 95.8% more.
In this way, Nvidia has achieved in the first half of its current fiscal year a net profit practically equivalent to that of the entire previous fiscal year, when it obtained 120.067 billion dollars (102.905 billion euros). "AI has reached a turning point," said Jensen Huang. "It is doing useful work. Its components are productive and profitable. Now, computing generates revenue," he added.
The executive also highlighted that demand "is accelerating," in a context he described as a "golden age" for new AI labs and startups, with multiple leading research centers growing in parallel, a robust ecosystem of open models, and the deployment of physical AI, with a notable boost both in the United States and around the world.
Looking ahead to the third fiscal quarter, Nvidia expects its revenues to reach around 108.000 billion dollars (92.563 billion euros), with a possible variation of 2%. The company expects the gross margin to be around 74%, with a fluctuation of 50 basis points up or down, and estimates that operating expenses will be approximately 9.200 billion dollars (7.885 billion euros).