Nvidia's Datacenter Business Soars Amid Component Shortages
Nvidia's financial results for the second quarter of fiscal 2027 have provided insight into the demand-supply imbalance in the server component market. According to Nvidia, its datacenter business is expected to grow by over 70% in fiscal 2028, driven by strong demand.
However, Nvidia CEO Jensen Huang noted that the company's revenue growth would be even higher if not for component shortages, including DRAM and HBM memory. Assuming a doubling of sales in both fiscal 2027 and 2028, Nvidia's demand would be just under 40% larger than its supply.
Nvidia has secured purchase commitments worth $279 billion, up from $119 billion at the end of Q1 F2027. These commitments span through fiscal 2029, with a small allocation for fiscal 2030 and beyond. The company's datacenter business generated $88.3 billion in sales, up 113.6% year-on-year.