Nvidia after the US stock market closed released an unexpectedly strong Q2 earnings report for fiscal year 2027; the share price initially fell by about 3% after-hours, then rebounded to gains of roughly 4%–5%. The company’s CFO expects that revenue in fiscal year 2028 will grow by approximately 70%, significantly higher than the roughly 44% expected by analysts earlier.
Even at the current scale, demand is still accelerating; customer forecasts indicate that next year’s growth will double. However, due to supply constraints, the company expects the growth rate to be about 70%. Jensen Huang said the company had never previously provided earnings guidance a full year in advance, and later in the call noted that actual demand growth has exceeded 70%, raising the previously mentioned “approximately 70%” even further.
This earnings strength underscores a shift in the long-term fundamentals of the hardware industry. In effect, it lifts the downside floor for profitability over the next year, even though such long-term changes are sometimes obscured by shorter-term market sentiment.
Even at the current scale, demand is still accelerating; customer forecasts indicate that next year’s growth will double. However, due to supply constraints, the company expects the growth rate to be about 70%. Jensen Huang said the company had never previously provided earnings guidance a full year in advance, and later in the call noted that actual demand growth has exceeded 70%, raising the previously mentioned “approximately 70%” even further.
This earnings strength underscores a shift in the long-term fundamentals of the hardware industry. In effect, it lifts the downside floor for profitability over the next year, even though such long-term changes are sometimes obscured by shorter-term market sentiment.