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NVIDIA Forecasts 70% Revenue Growth Despite Margin Pressure
Electronic Technology · Semiconductors · yonhap_finance · 2026-08-27
NVIDIA projects a 70% revenue surge for the next fiscal year, offsetting concerns over temporary margin compression caused by rising memory costs.
What Happened
Revenue Growth Outlook: NVIDIA expects its revenue for fiscal year 2028 to grow by approximately 70%. This strong growth forecast helped the company's stock rebound in after-hours trading following the earnings report.
Margin Compression: The company provided a gross margin guidance of 74% for the third quarter, with expectations for a further dip to 71-72% in the fourth quarter. This adjustment reflects the impact of surging costs for critical components like High Bandwidth Memory (HBM).
Pricing Strategy: To mitigate cost pressures, NVIDIA plans to raise prices for its next-generation 'Vera Rubin' AI servers by over 15%. Management remains committed to maintaining mid-70% margins through production efficiency and product mix optimization.
Market Sentiment: Although the stock dipped during regular trading hours due to margin concerns, the robust revenue outlook restored investor confidence. While memory supply constraints present a short-term cost challenge, the company's long-term growth trajectory remains intact.