Nvidia Surpasses Expectations with 70% Revenue Growth Guidance
Nvidia's recent earnings report exceeded market expectations, with a FY28 full year revenue growth guidance of 70% far surpassing forecasts.
The company's FY27Q2 core financial indicators show significant growth: revenue was up 106% YoY and 18% QoQ, beating consensus of $91.9B and guidance of $91B, while GAAP gross margin was 75%, up 3.2pp YoY and 0.1pp QoQ.
Nvidia's growth outlook is supply-constrained, with Jensen Huang stating that the company currently has supply for roughly 70% of what customers want, with constraints spanning essentially the entire supply chain.
The introduction of Vera Rubin, a new GPU cycle, is expected to drive another step-up in revenue per gigawatt, with Nvidia's revenue opportunity per GW rising about 60% from Grace Blackwell to Vera Rubin.
Nvidia expects gross margin to bottom around 71%-72% in Q4 before recovering toward 72%-73% in FY28, due to pressure on memory pricing.