Nvidia expects its revenues to increase by 70 percent in the next fiscal year. The company highlighted the Vera Rubin platform while stating that strong demand for AI chips will continue.
Nvidia has announced strong financial expectations, indicating that demand for artificial intelligence infrastructure continues unabated. The company anticipates its revenues to grow by approximately 70 percent in the upcoming fiscal year, whereas analysts had projected only a 44 percent growth for the same period.
Nvidia's fiscal calendar concludes in January. Accordingly, the company expects its revenues to grow by approximately 70 percent in the fiscal year ending January 2028. Nvidia sharing a revenue forecast of this magnitude for a year out is also quite unusual.
CEO Jensen Huang stated that artificial intelligence has now reached a significant turning point, saying, "AI is doing useful work. The tokens it generates are productive and profitable. Computation now means revenue."
Third Quarter Revenue Could Reach $108 Billion
Nvidia expects $108 billion in revenue for the third quarter of the current fiscal year. The company's estimate includes a 2 percent margin of error. In the worst-case scenario, this still means revenue $2 billion above market expectations.
In the second quarter of the fiscal year, the company doubled its revenues year-on-year to $96.22 billion. This achievement also significantly exceeded market expectations.
The source of this growth is, naturally, data centers. Data center revenue surged to $89 billion in the quarter ending in July. This figure represents more than a twofold increase compared to the same period last year.
Total profit also more than doubled, reaching $59.7 billion. Nvidia thus approached the $100 billion quarterly revenue mark for the first time. Companies like Amazon, Apple, and Alphabet had surpassed this level many times before.
Vera Rubin Will Bring Smiles
One of the key drivers of Nvidia's future growth will be the next-generation Vera Rubin platform. The company announced that the platform has begun shipping to customers and is expected to account for approximately one-fifth of total data center revenues in the current quarter.
Nvidia executives stated that production of Vera Rubin chips will be ramped up over the next few years, and sales will be expanded, particularly to AI laboratories. The company expects demand from AI laboratories to account for approximately one-quarter of its total business next year.
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