Nvidia forecast a 70% jump in revenue for its next fiscal year, significantly above Wall Street expectations of 44%, signaling that demand for AI computing remains exceptionally strong. Shares rose nearly 5% in extended trading following the forecast.
The company said its data-center business more than doubled to $89 billion in the fiscal second quarter, while total revenue climbed to $96.22 billion, beating analysts’ estimates. Nvidia also forecast third-quarter revenue of about $108 billion, above the $104.19 billion consensus estimate. Its next-generation Vera Rubin platform is expected to contribute about one-fifth of data-center revenue in the current quarter.
However, Nvidia warned that memory and component shortages are limiting how quickly it can expand, while rising memory prices are expected to pressure margins. The company also highlighted growing demand from AI labs, cloud providers, enterprises and sovereign customers, while expanding its partnership with Amazon Web Services to deploy an additional 2 million Nvidia GPUs in 2027 and 2028. China remains a major uncertainty, with the company excluding China data-center revenue from its outlook.
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