Nvidia's AI-Fueled Growth Sparks Supply Chain Worries

Nvidia delivered another impressive quarter, with total revenue reaching $96 billion, a 100% year-over-year increase. Data center revenue accounted for $89 billion of this figure.

The company's guidance for fiscal 2028 is even more striking, with projected revenue growth of around 70%. Chief Financial Officer Colette Kress noted that customer forecasts indicate that Nvidia's growth will double next year.

Nvidia's CEO Jensen Huang framed the quarter by explaining that the surge in AI demand is driving a global infrastructure buildout. He emphasized that supply constraints will persist at least through the end of fiscal 2028, with Chief Financial Officer Colette Kress adding that 'our entire supply chain is challenged.'

The company's strategy to mitigate these supply chain challenges involves moving further upstream and downstream than any other chip company. Nvidia is now involved in memory suppliers, power generation, and land development.