Nvidia Issues First Full-Year Revenue Forecast Targeting $673 Billion

Nvidia has released its first-ever full-year revenue forecast, projecting $673 billion for fiscal 2028. This guidance represents an anticipated growth rate of approximately 70%, a figure that would place the chipmaker behind only Amazon in global corporate revenue rankings.

The announcement follows the company's fiscal second-quarter earnings report on August 26, which showed $96.2 billion in revenue, a 106% increase compared to the same period last year. Data-center revenue reached $89 billion in the second quarter, accounting for 89% of total revenue and reflecting a 117% year-over-year increase.

CEO Jensen Huang stated that the decision to provide a full-year outlook is intended to assist supply chain partners with longer planning horizons. Huang noted that components for next-generation AI chips, specifically high-bandwidth memory, are currently constrained. These supply limitations are expected to cap the company's shipment capacity, suggesting that actual customer demand may exceed the 70% growth forecast.

For the third quarter, Nvidia has guided revenue to $108 billion, with a margin of error of 2%. Gross margins are projected to remain at 74% for the third quarter before adjusting to a range of 71% to 72% in subsequent quarters.

The projected $673 billion revenue figure is comparable to the GDP of Switzerland. Five years ago, the company generated approximately $27 billion in annual revenue. This shift in scale highlights a broader trend in the semiconductor industry where data centers have replaced smartphones, PCs, and gaming consoles as the primary drivers of demand for advanced chips.