Nvidia's first-year forecast projects 70% growth to counter AI bubble critics

Nvidia issued its first-ever year-ahead forecast Wednesday, projecting 70% revenue growth for fiscal 2028hot and sending its stock up over 4% in after-hours trading. The announcement aimed to counter critics who have warned of an AI bubble and concerns about "circular financing." The projection implies fiscal 2028 revenue between $690 billion and $700 billion, exceeding analyst expectations of roughly $570 billion by more than $100 billion. CEO Jensen Huang said demand for AI chips is growing 100%, despite significant supply chain constraints. Quarterly results also crushed estimates, with revenue hitting $96.2 billion, up 106% year-over-year. Nvidia CFO Colette Kress defended the company's investments in AI partners against circular financing claims, arguing they represent low-risk, high-reward opportunities. The company disclosed maximum gross guarantee exposure of $108.5 billion, largely tied to credit support for an Ohio tech campus hosting compute leased to OpenAI. The company also guided third-quarter gross margins to 74%, more resilient than market expectations.