Nvidia reported another blowout quarter on Wednesday, with top-line metrics strong enough to send the stock up 4% in after-hours trading. Analysts attending the earnings call couldn’t get over the California-based company’s forecast for 70% revenue growth in 2028, especially after CFO Colette Kress identified it as a “supply-constrained outlook.” While there was a lot of talk before the call about additional share buybacks, possible price increases, and adjustments to capital allocation to drive stock price gains, the headline for analysts was clearly the revenue growth outlook and its impact on the overall sustainability of the AI buildout. Morgan Stanley analyst Joseph Moore asked CEO Jensen Huang, “What gives you confidence to operate for the full year? Are you not doing that?” Stacy Rasgon, a semiconductor analyst at Bernstein, said the 70% growth forecast represents a “$200 billion increase compared to previous projections.” There were a total of four separate questions from analysts regarding fiscal year 2028 revenue expectations, most of which centered around what growth would look like if it were not constrained by supply chain factors, particularly the shortage of component memory chips. “If there were no restrictions, (the outlook) would be quite high,” Huang said. “It’s important that we don’t have constraints, so we need to work hard to get more production capacity,” he told Rasgon. Nvidia’s predictions, perhaps the most important company in building global computing infrastructure, are likely to reinvigorate the narrative around the so-called artificial intelligence supercycle. In contrast to its renewed focus on returning profits to shareholders and expanding its profit margins, the company appears to be still in the midst of expanding its core businesses, combining upward revisions to its plans with financing plans to make it happen. While the company’s revenue is growing, its customer base (comprised primarily of cloud computing giants running enterprise workloads for businesses) appears to be becoming more concentrated. Nvidia said in a filing with the Securities and Exchange Commission that just five customers accounted for a total of 70% of its accounts receivable at the end of July. “(This is) up from 56% a year ago,” financial writer Ed Zitron wrote in a social media post.
