Nvidia announced Wednesday that it expects revenue to grow by approximately 70% in the next fiscal year, ending January 2028. The semiconductor company also forecast third-quarter revenue of $108 billion, exceeding the average analyst estimate of $104.19 billion reported by LSEG.
The projection comes as the company reports second-quarter revenue of $96.22 billion, more than double its performance from the previous year. Nvidia Chief Executive Jensen Huang stated that artificial intelligence has reached an "inflection point," noting that the company is now providing a rare long-term forecast due to sustained demand from AI labs, enterprises, and cloud providers.
Despite the growth forecast, Nvidia executives warned of ongoing supply chain challenges. Finance chief Colette Kress told analysts that shortages of memory components and higher costs will continue to limit expansion speed and exert pressure on profit margins. The company expects margins to reach a low point of 71% to 72% in the fourth quarter, down from 74% in the third quarter.
For technology companies and AI labs like OpenAI, these projections signal the availability and cost of the hardware necessary to run large-scale computing tasks. A typical enterprise or sovereign buyer will notice these trends through the continued high cost of components and potential wait times for hardware, as Nvidia confirmed it remains "supply-constrained." The shift in capacity for "neo-cloud" providers—specialized firms like Nebius and CoreWeave—is expected to grow from three gigawatts last year to over eight gigawatts by the end of this year, increasing the total computing power available for rent to other businesses.
The long-term impact involves a reshaping of the global data center market, as Nvidia's next-generation Vera Rubin processors begin to account for a larger share of industry infrastructure. While the U.S. government cleared approximately 10 Chinese firms to purchase H200 chips in May 2026, the future of Nvidia’s business in China remains uncertain, with the company omitting China data center revenue from its current outlook. Investors and industry partners will be monitoring the rollout of the Vera Rubin platform, which is expected to represent one-fifth of data center revenue in the quarter ending in October.
What happens next: Nvidia and Amazon Web Services will begin the deployment of 2 million additional GPUs starting in 2027. Market participants will also monitor the fourth quarter of the current fiscal year, when the company expects its profit margins to bottom out at 71% to 72% due to component costs. Furthermore, the company's new Vera Rubin platform is scheduled to ramp up production following its initial shipments to customers.