Nvidia's $108 Billion Q3 Guide May Be Too Conservative

Nvidia is preparing to release its third-quarter revenue guidance, which is expected to be around $108 billion. However, Manali Pradhan, CFA of The Motley Fool believes that this number may look conservative by December.

Pradhan points out that Nvidia has exceeded the high end of its revenue guidance in each of the past 12 quarters, with actual revenue averaging 3.1% above the high end of guidance over the last four quarters.

Nvidia's operating numbers also support similar revenue numbers. In the second quarter of fiscal 2027, hyperscaler revenue increased 13% sequentially to nearly $49 billion, while AI Clouds, Industrial, and Enterprise (ACIE) revenue jumped 25% sequentially to $40 billion, and Edge Computing rose 13% sequentially to $7.2 billion.

If the three businesses repeat those sequential growth rates in the third quarter, total revenue could reach approximately $113.6 billion. Supply remains a key constraint for Nvidia's growth, particularly with ACIE accounting for about 45% of its Data Center revenue and management expecting it to drive most of the sequential revenue growth.

The ongoing ramp of Nvidia's next-generation computing system, Vera Rubin, is also expected to support revenue growth, but production shipments started in August 2026 and supply remains a key risk. Higher memory prices are also adding pressure, and hyperscaler revenue is expected to reaccelerate in the fourth quarter.