Dorothy

Nvidia expects revenue to grow by about 70% in fiscal 2028. VCG via Getty Images

Shares were last up 5.95% in premarket trading. Nvidia CFO Colette Kress said on Wednesday that the company expects revenue growth of 70% for fiscal 2028, which runs from February 2027 to January 2028. CEO Jensen Huang said demand "is much greater than 70%," but the company is constrained on the amount of product it can supply.

Nvidia’s surprising stab at providing longer-term guidance (70% revenue growth for fiscal 2028, versus consensus around 45%) was taken positively, especially in the context of the number reflecting constrained supply dynamics (imagine how high the forecast could have been without the bottlenecks). The conference call pushed back on the circular deal narrative, while Huang later said “investing in these companies is a once in a generation opportunity. I think the only regret that I have is that I didn’t invest more and sooner.”

And we're going to continue to work with our supply chain to increase on that." The gross margin outlook was a bit lower than expected, with Kress attributing the crunch to the relentless rise in memory prices, both for the remainder of this fiscal year and for fiscal 2028. The CFO expects memory prices to be even higher into next year — a negative for most companies but a boon to fellow Club name Micron, which saw its stock jump more than 3.5% in after-hours trading. Nvidia's revenue upside, however, stands to more than make up for the memory squeeze. Come morning, expect a deluge of analysts to upwardly revise their earnings estimates. In addition to the results, Nvidia announced an expansion of its partnership with Amazon 's cloud unit.

The pair will deploy an additional 2 million Nvidia GPUs across Amazon’s global infrastructure in 2027 and 2028, Nvidia finance chief Colette Kress said on an earnings call.

Still, Nvidia’s involvement has been critical and substantial and, moreover, has led to a drag on the stock price. The company disclosed maximum gross guarantee exposure of $108.5 billion, which mostly stems from credit support for SB Energy’s Ohio tech campus, which will host Nvidia compute leased to OpenAI. The rest is due to $3.5 billion backing lease obligations for AI cloud partners. Nvidia has also publicized investments of nearly $50 billion in frontier AI labs and has partnered with private equity giants Apollo, BlackRock, Blackstone, Goldman Sachs, and KKR to raise more than $500 billion in third-party capital for AI infrastructure.

Nvidia said, "Securing land, power and shell for data centers has become the next critical phase in the AI infrastructure buildout," with $56 billion committed there. The company has also agreed to provide $105 billion in financing for a massive data center project in Ohio, where ChatGPT creator OpenAI will be the tenant via a 20-year lease, and $3.5 billion to land, power, and shell guarantees for AI clouds. Adding it all up, we're looking at commitments of about $530.5 billion. That certainly isn't nothing but given the demand we're seeing for AI and the free cash flow Nvidia stands to generate in the years ahead, we think it is perfectly manageable. Kress defended the merits of the company's investments. "We know some will call this circular financing.

Nvidia's growing financial strength has also reshaped its role in the sector. It has become a backer to those that rely on its chips, providing some funding to the likes of OpenAI, Anthropic, and SpaceX to help continue the costly buildout of AI infrastructure.

Nvidia forecast third-quarter revenue of $108 billion, plus or minus 2%, compared with analysts' average estimate of $104.19 billion, according to data compiled by LSEG. REUTERS

With around 40% of the US stock market concentrated in ten companies heavily invested in AI, Nvidia's fortunes matter far beyond Silicon Valley.

‘We see it differently’ While the booming demand for AI chips has made Nvidia the world’s most valuable company, with a market cap of more than $5 trillion, critics have warned about the company’s spate of investments in other companies within the AI industry, from data center operators to frontier model makers like Anthropic. Many view the deals, which Nvidia is financing from its massive cash pile, as creating dangerous interdependencies with the AI business.