Overview
- Nvidia reported roughly $96.2 billion in revenue with about $89 billion from data‑center sales and on August 26 gave unusually long‑range guidance that targets about 70% revenue growth for fiscal 2028.
- Management said it has started production shipments of the Vera Rubin platform, which bundles GPUs and Nvidia’s first stand‑alone CPU to capture more system‑level revenue per gigawatt.
- Nvidia warned gross margins will fall from about 75% in Q2 to roughly 71%–72% in Q4 and settle near 72%–73% in fiscal 2028 because rising DRAM and high‑bandwidth memory (HBM) costs will raise component expense.
- Memory suppliers are the main short‑term beneficiaries of tight supply and higher prices, with Micron reporting outsized revenue and margin gains and strong near‑term guidance, while OEMs such as Dell and Broadcom show record AI demand but mixed market reactions to guidance.
- The shift concentrates market power: Nvidia’s market value has surged and now represents a record share of major indexes, which raises investor focus on supply‑chain bottlenecks, customer concentration, and how higher component costs will redistribute profits across the AI infrastructure ecosystem.