NVIDIA Surges 6% as a 70% Growth Forecast Overrides a Memory Margin Warning, AMD and Intel Tick Up
NVIDIA said fiscal 2028 revenue will grow about 70% as memory costs are expected to pressure gross margins for three straight quarters.
- NVIDIA stock surged 6% to $221.80 on Thursday after the company reported fiscal Q2 2027 revenue of $96.2 billion, more than double year-over-year, overshadowing a three-quarter gross margin reset.
- Chief Financial Officer Colette Kress forecast 70% revenue growth in fiscal 2028, far exceeding analyst expectations of 44%, though she warned margins will fall for three consecutive quarters as memory suppliers control pricing.
- Kress stated NVIDIA is "experiencing extreme pricing conditions in memory," noting that cost increases have exceeded prior expectations and will head "even higher into next year." The scarcity reflects the same AI demand surge driving the company's revenue growth.
- Semiconductor shares rallied broadly Thursday as the iShares Semiconductor ETF climbed 2% to $527, while Advanced Micro Devices and Intel each gained 1% on NVIDIA's AI demand commentary and supply constraints.
- Supply commitments swelled to $279 billion at quarter end, largely tied to memory procurement for the Vera Rubin platform now in full production and Blackwell Ultra shipments driving data center revenue growth.
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21 Articles
Nvidia once again delivers strong figures – and fund manager Eckhardt Schulte still sees no end to the AI boom. He believes that 70 percent sales growth is realistic and trusts the share to have further price potential.
Nvidia bullish over sales outlook
Nvidia Corp on Wednesday gave a bullish sales outlook for fiscal 2028, easing concerns that artificial intelligence (AI) spending is poised to lose momentum.“We expect to grow revenue by approximately 70 percent in fiscal 2028,” Nvidia chief financial officer Colette Kress said during a post-earning
Watch Nvidia Sees AI-Fueled Demand Boosting Sales 70% Next Year
Nvidia said revenue will grow about 70% next fiscal year, easing concerns that AI spending is poised to lose momentum. Angelo Zino, SVP and Tech Lead at CFRA Research, breaks down Nvidia's earnings blowout and other tech headlines.
NVIDIA Surges 6% as a 70% Growth Forecast Overrides a Memory Margin Warning, AMD and Intel Tick Up
NVIDIA just posted the kind of earnings beat that lifts an entire sector, but the same force powering its revenue growth is quietly eating into its margins in a way management admits will get worse before it gets better.
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