Nvidia's Supply Chain Struggles: A 30-Point Gap in Demand vs Reality
Nvidia's recent earnings report was met with enthusiasm from Wall Street, particularly after the company guided to 70% revenue growth for fiscal 2028. However, a closer look at the numbers reveals that demand is actually outpacing supply by a significant margin.
According to John Vinh, Senior Research Analyst at KeyBanc Capital Markets, Nvidia's actual demand for next year is around 100%. Despite this, the company can only deliver on about 70% of that growth due to supply constraints. 'Our entire supply chain is challenged,' Jensen Huang confirmed during a call with investors.
Vinh notes that a company facing manufacturing and supply chain problems carries different risks than one experiencing demand issues. This means that investors should reassess their expectations for Nvidia's future performance.