Nvidia Guides 70% Growth for Fiscal 2028 After Q2 Revenue Doubles to $96.2B

Nvidia delivered a stunning earnings beat on August 26, reporting Q2 fiscal 2027 revenue of $96.2 billion, up 106% from a year ago. The chipmaker shocked Wall Street by forecasting 70% revenue growth for fiscal 2028, implying revenue near $690-700 billion, over $100 billion above analyst consensus of $570 billion. CEO Jensen Huang declared AI has reached an inflection point, with demand accelerating across new labs and startups globally.

Record revenue and data center dominance

Nvidia’s Q2 revenue of $96.2 billion crushed expectations, rising 18% sequentially and 106% year-over-year. Data center revenue hit $89.0 billion, up 117% from the prior year and beating analyst estimates of $85.83 billion. Net income reached $59.7 billion, up 126% annually, while diluted earnings per share came in at $2.46, up 128% from $1.08 a year earlier. Gross margin held steady at 75%, matching analyst expectations.

70% growth forecast stuns the market

Huang forecasts 70% fiscal 2028 revenue growth, implying revenue of $690-700 billion, far exceeding the Visible Alpha consensus of $570 billion and 44% growth. This marks the first time Nvidia has guided beyond one year. CFO Colette Kress said customer forecasts pointed to demand doubling next year. The company also guided Q3 revenue to $108 billion, above analyst estimates of $104.57 billion. Nvidia noted that supply constraints, not demand, limit growth; without bottlenecks, expansion would exceed 70%.

Memory costs bite margins despite strong demand

Nvidia warned that memory component costs are “extreme” and exceeded its own expectations, forcing the company to reset margin guidance. Q3 gross margin is expected at 74%, plus or minus 50 basis points, then bottoming at 71-72% in fiscal Q4 before recovering to 72-73% in fiscal 2026 as chip price hikes take effect. The company returned $26.0 billion to shareholders via buybacks and dividends in Q2, with $99.0 billion remaining under its repurchase authorization. Nvidia will pay a $0.25 per share dividend on October 1, 2026.

AI labs multiply, but supply remains constrained

Huang said AI infrastructure buildout is at full steam, with multiple frontier labs and startups scaling in parallel, plus a thriving open-model ecosystem. A year ago, one lab alone drove the buildout; today, demand spans cloud providers, industrial, and enterprise segments. AI Clouds, industrial, and enterprise sales jumped 138% year-over-year. However, the entire supply chain remains challenged; Huang said everybody is running flat out. TSMC and memory chip shortages will persist, limiting production expansion despite soaring demand.

Final Thoughts

Nvidia’s 70% fiscal 2028 growth forecast and record Q2 results confirm AI infrastructure spending will sustain momentum through 2028. With Meyka grading NVDA an A and targeting $307.79 within three years, the data supports strong long-term upside, though near-term margin pressure and supply constraints warrant caution.

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