Nvidia forecasts $673B in sales as AI demand widens beyond hyperscalers
Nvidia projects $673B in sales as AI demand widens
Nvidia projects 70% revenue growth in fiscal 2028, implying annual sales of roughly $673 billion—surpassing Apple and Alphabet to become the second-largest US tech company by revenue. The forecast, delivered by CFO Colette Kress, far exceeds analyst estimates and reflects broadening demand from regional AI firms, neoclouds, startups, and enterprises. Despite supply constraints, CEO Jensen Huang emphasizes that demand exceeds 70%, and the company is expanding its role to finance infrastructure, including a $105 billion Ohio campus and up to $500 billion in data-center financing, raising questions about circular funding.
Our demand is much greater than 70%. Our supply allows us to confidently deliver 70%, and we’re going to continue to work with our supply chain to increase on on that.
- consumer451
I have not been paying much attention to the whole circular deal thing that NVIDIA is supposedly doing. As in, they invest in their clients, who buy their products.
Can anyone who actually understands finance please explain a couple things to me?
1. Are those accusations are true in a significant way, and are actually a bad thing?
2. This claimed $673B in sales, how much of it comes from NVIDIA's own money, invested into their clients? Is there any way to know that?
- heisenbit
This would require data centre cap-ex north of 1T and revenues from non AI companies in the same order of magnitude. Is it realistic to scale up data centre roll-outs? Are regular companies ready to re-allocate 1T? And this all happens in an environment where rates go up and many of the companies are not profitable?
- drbscl
Sold after the price rise from this announcement. They can make the sales projection, but it doesn't mean they'll hit it:
1. Small models are rapidly growing in capability, require less compute to train and serve
2. There are more suppliers now, both in China & the US (OpenAI even have their own inferencing hardware now)
3. Memory still constrains how much they can ship in the short term
- ask1287
Posts that question the AI Endsieg are flagged now. That is supreme confidence in the numbers.
- vb-8448
The projected ai capex for this and next years is above 1000b/year. 673b/year doesn't sound so weird, if they manage to spent so much, obviously.
- throwaway63467
It’s crazy that their profit margin is above 50 %, before the AI craze I only knew such margins from drug trafficking cartels (supposedly).
- jedberg
Remember, Nvidia sells services too, not just GPUs. They also sell full racks of servers. This is just sales, not profits.
- Havoc
A long time ago I put money into Qualcomm and then just dumped the remaining cash into Nvidia. That did well but wow do I wish I had done the reverse