Nvidia's Supply Constraints Weigh Down Financial Outlook

Nvidia, a leading artificial intelligence infrastructure provider, is facing supply constraints that are weighing down its financial outlook for the next fiscal year. The company's co-founder and CEO, Jen-Hsun Huang, said on an earnings call that the shortages span the entire supply network, from high-speed memory and silicon vendors to suppliers of AI data centers under construction.

Nvidia has secured a significant amount of supply to drive 70% year-over-year revenue growth in fiscal 2028, but this falls short of demand. The company's EVP and CFO, Colette Kress, said that the semiconductor shortage is expected to remain a bottleneck at least through the fiscal year ending in early 2028.

The shortages have led to extreme pricing conditions in memory, with prices headed even higher into next year, according to Kress. However, Nvidia has deep, long-standing relationships with major memory suppliers and is working closely with them to increase capacity.