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Nvidia Forecasts 70% Revenue Growth for Next Fiscal Year Amid Supply Chain Expansion
Electronic Technology · Semiconductors · yonhap_finance · 2026-08-27
Nvidia projects a 70% revenue surge for fiscal 2028, banking on relentless AI demand while navigating memory supply constraints through aggressive procurement.
What Happened
Revenue Growth Outlook: Nvidia has issued a bold forecast, projecting a 70% revenue increase for fiscal year 2028, significantly outpacing market expectations. CEO Jensen Huang emphasized that AI demand is accelerating, noting that the company's growth is currently limited only by the availability of supply.
Margin Pressures and Strategy: The company adjusted its gross margin guidance downward due to rising costs for high-bandwidth memory (HBM). To mitigate these pressures, Nvidia plans to implement cost optimizations, production efficiencies, and strategic price increases to maintain margins in the mid-70% range.
Supply Chain and Shareholder Returns: To secure its production capabilities, Nvidia has expanded its supply and facility commitments to $279 billion. Simultaneously, the company returned a record $26 billion to shareholders through stock buybacks and dividends, underscoring its robust financial position.
AI Market Leadership: CEO Jensen Huang dismissed concerns over AI investment sustainability, describing current spending as a once-in-a-generation opportunity. He reaffirmed confidence in Nvidia's platform, asserting that its comprehensive AI ecosystem remains superior to custom chip projects pursued by its customers.