- NVIDIA forecasted 70% revenue growth for fiscal 2028, and Q3 revenue of $108 billion, surpassing analyst expectations.
- Q2 revenue hit $96.2 billion, topping projections of $92.1 billion, driven by its data center division.
- Amazon Web Services committed to deploying two million Nvidia GPUs between 2027 and 2028 under an expanded partnership.
Nvidia (NVDA) shares surged about 5% in after-hours trading Wednesday after the chipmaker projected 70% revenue growth for fiscal 2028, clearing the key test for investors worried about AI monetization. The company reported Q2 revenue of $96.2 billion for the period ended July 26, more than doubling year-over-year and topping the $92.1 billion expectation.
Nvidia now expects Q3 revenue of $108 billion, ahead of the $103.9 billion consensus. Colette Kress, Executive Vice President and CFO, stated during the earnings call that an expanding set of opportunities from hyperscalers to sovereign customers is driving the surge.
Consequently, Amazon Web Services committed to deploying two million next-generation Nvidia GPUs across its infrastructure from 2027 to 2028. Jensen Huang, Nvidia CEO, emphasized the pace of adoption: “The AI infrastructure build-out is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
However, supply chain constraints persist. Key suppliers like Samsung Electronics and SK Hynix are at maximum capacity, but memory availability is expected to lag market needs for years, according to Bloomberg. Nvidia has informed clients of product price hikes exceeding 15% due to rising component costs.
Meanwhile, competition is intensifying. OpenAI disclosed that its new internal processor, code-named Jalapeno, performed better than Nvidia’s current chips during testing. Retail sentiment on Stocktwits shifted to ‘extremely bullish,’ with most investors anticipating gains at Thursday’s open.
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