Overview
- Nvidia reported a record fiscal Q2 with $96.22 billion in revenue and about $89 billion from its data‑center business, and on Aug. 26 the company issued its first-ever year‑ahead revenue forecast of roughly 70% for fiscal 2028.
- Management said the 70% figure reflects what the company can manufacture rather than total demand and pointed to high‑bandwidth memory shortages and rising DRAM costs as the main constraints on shipments and gross margins.
- The year‑ahead outlook explicitly excludes China data‑center revenue, introducing a clear geopolitical risk that could materially change the company’s results if U.S.–China export rules shift.
- Markets rallied on the guidance and beat results, but analysts warned that aggressive extrapolations of future profit and revenue depend on resolving memory bottlenecks, holding margins, and stable geopolitics.
- The wider effect is pressuring the supply chain: memory and packaging suppliers have pricing leverage that could push server costs higher and squeeze OEM and Nvidia margins even as hyperscalers keep accelerating AI data‑center spending.