Nvidia Breaks with Tradition, Provides Distant Revenue Growth Forecast

Nvidia's latest earnings report was not just about beating Wall Street estimates. The company also took the unusual step of providing its revenue growth forecast for fiscal 2028, a full year ahead of schedule.

The forecast is impressive: Nvidia expects to grow its revenue by 70% in fiscal 2028, far exceeding the 45% analysts had been modeling before the announcement. According to JPMorgan analyst Harlan Sur, Nvidia executives told him that they have much stronger visibility into next year than investors appreciate.

The company's concern is not just about convincing shareholders of its growth prospects. Its suppliers need to make decisions about memory, manufacturing capacity, and other infrastructure long before the resulting products reach customers. A market consensus dramatically below Nvidia's own expectations can send a very different signal about how much capacity will ultimately be required.

Nvidia's CEO Jensen Huang said that growth could exceed 100% without supply constraints, particularly shortages of memory components. The company has credibility for making this argument after its latest quarter saw revenue reach $96.2 billion, ahead of the $92.3 billion analysts expected.