Nvidia Blows Away Analyst Forecasts with 70% Revenue Growth Target

Nvidia's stock had been stuck in neutral for much of the summer prior to its earnings report, with investors concerned about peak artificial intelligence growth. To address these concerns, Nvidia decided to provide a rare long-term outlook that would silence the naysayers.

The company revealed it sees 70% revenue growth for fiscal year 2028, significantly above analyst forecasts of 45%. This guidance was motivated by Nvidia's desire to close the gap between Street estimates and its internal projections, which could have created supply-chain planning challenges for partners.

Nvidia's CEO Jensen Huang noted that memory chip shortages would reduce revenue growth, but even with this factor, the company is targeting over 100% growth. Despite the strong guidance, analysts continue to take a cautious view on Nvidia's fiscal year 2028 revenue growth, modeling only 63% year-over-year growth.

In its latest earnings report, Nvidia exceeded expectations, posting adjusted earnings per share of $2.22 and revenue of $96.2 billion. The company also provided guidance for the third quarter, projecting revenue between $105.8 billion and $110.1 billion.