Jensen Huang's Nvidia Guided for 70% Revenue Growth in Fiscal 2028, Far Above the 44% Wall Street Expected, as Amazon Agreed to Buy 2 Million Nvidia GPUs. Is the Growth Forecast Believable?
Nvidia (NVDA) projected 70% revenue growth for fiscal 2028, exceeding Wall Street's 44% expectation, citing supply constraints. Amazon (AMZN) ordered 2 million GPUs, supporting Nvidia's forecast. Nvidia's fiscal 2027 Q2 saw 106% YoY revenue growth, driven by its new Vera Rubin architecture.
How this was made
The 30-second read
Why it matters
The guidance could reset valuation multiples for Nvidia and signal continued AI spending by hyperscalers.
Market read
Both companies are central to the AI hardware ecosystem; Nvidia's guidance may drive sector rotation into AI‑related equities.
What to watch
Potential competition from emerging AI chips and regulatory scrutiny on AI workloads.
Background
Nvidia provided unprecedented multi‑year revenue guidance during its FY2027 Q2 earnings call, while Amazon announced a sizable GPU purchase.
Ticker impact
Nvidia CFO disclosed 70% YoY revenue growth guidance for fiscal 2028 and noted recent 106% Q2 FY2027 growth.
Potential upside as investors price in higher growth expectations.
Guidance is a primary disclosure from the earnings call and materially exceeds consensus.
Amazon placed an order for 2 million Nvidia GPUs for delivery in 2027‑2028, supporting Nvidia's growth outlook.
Minor positive effect on AMZN as the order signals continued AI investment.
Order size is significant but does not directly alter Amazon's core financials.
Market effects
AI‑related hardware demand expected to stay robust, benefiting semiconductor and cloud‑service sectors.
U.S. tech sector may see uplift; global AI supply chain dynamics reinforced.
High, as Nvidia's guidance influences worldwide AI investment sentiment.
Counterpoint
Guidance may be overly optimistic given supply constraints and macro‑economic headwinds.
Key entities
- CompanyNvidia
AI chipmaker delivering record growth.
- CompanyAmazon
Major cloud provider and Nvidia GPU customer.
