Nvidia projects 70 percent revenue growth to become second largest U.S. tech firm
Nvidia's projection of 70 percent revenue growth for fiscal 2028 would push its sales past 673 billion dollars, signaling that artificial intelligence demand is broadening beyond a few major hyperscalers and positioning the chipmaker as the second-largest U.S. technology company by revenue.
Nvidia chief financial officer Colette Kress told investors the company expects 70 percent revenue growth in fiscal 2028. This projection significantly exceeds the 44 percent average analyst estimate tracked by LSEG.
Applying that growth rate to the consensus fiscal 2027 revenue projection of 396 billion dollars yields 673 billion dollars in sales for the following year. Wall Street projections indicate this would place Nvidia behind only Amazon among U.S. technology companies, surpassing both Apple and Alphabet.
The chipmaker, currently the most valuable company in the world, already saw its revenue double in the latest quarter from a year earlier. However, the guidance could have been higher if not for global memory shortages constraining supply.
"Our demand is much greater than 70 percent," chief executive Jensen Huang said on the earnings call. "Our supply allows us to confidently deliver 70 percent, and we're going to continue to work with our supply chain to increase on that."
Nvidia rarely provides financial forecasts this far into the future. Huang explained the unusual guidance was necessary because he now has clear visibility into next year's computing power needs and wants to align with partners supplying data center land and power. "Everybody's putting a lot of resources in play, and so we wanted to make sure that everybody has the same set of information," Huang told analysts.
For investors, the most critical takeaway is the shifting composition of the customer base. The company noted that demand for multi-billion dollar artificial intelligence buildouts is moving away from a narrow group of hyperscalers building data centers for frontier labs like OpenAI.
"This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world," Huang said in a statement. This shift suggests the artificial intelligence boom is maturing beyond its initial concentration.
Huang highlighted a new customer category he calls ACIE, comprising regional artificial intelligence companies, neo-clouds, startups, and enterprises. These buyers were previously largely invisible but are now attracted by the comprehensive data center technology Nvidia provides.
To support this expansion, Nvidia recently announced a financing program with six major financial firms. The initiative helps newer companies and frontier labs afford the high-priced systems.
"That part of the world's computing is likely to be larger over time than even what we're currently experiencing in the cloud, and I think the demand that we see is driven by all of those factors," Huang said. The broader adoption across these new segments could sustain the chipmaker's historic expansion.
