Huang Renxun Tells the Truth: Actual Compute Demand Exceeds 70%, and Capacity Constraints Hold Back Performance

At NVIDIA’s quarterly earnings call for fiscal Q2 2027, the company delivered major guidance. CFO Colette Kress revealed that NVIDIA expects full-year revenue growth of up to 70% for fiscal 2028—significantly higher than the 44% consensus forecast compiled by market data provider LSEG.

Based on market estimates that NVIDIA’s revenue for fiscal 2027 will be $396 billion, if the 70% growth target is achieved, NVIDIA’s fiscal 2028 revenue would rise to about $673 billion. This scale is expected to surpass Apple and Alphabet, placing NVIDIA second among U.S. technology companies, behind Amazon, whose primary business is retail.

During the call, Huang Renxun admitted that the growth rate of real market demand is actually higher than 70%. Due to supply bottlenecks for components such as memory chips, NVIDIA’s production capacity ceiling limits the ability to provide an even higher performance outlook. The company is expanding capacity in coordination across its entire supply chain to do its best to ease supply pressure.

He said NVIDIA rarely issues revenue forecasts spanning more than a year. Now that it can anticipate next year’s compute demand—alongside large-scale investments in resources such as land and electricity for data center infrastructure—it needs to give clear expectations to both upstream and downstream partners.

AI compute demand is no longer coming solely from leading cloud providers and top research labs. Regional AI companies, next-generation cloud service providers, startups, traditional enterprises, open-source model ecosystems, and even the physical AI sector have all become key incremental customer groups.
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