Nvidia’s 70% Growth Call Supercharges AI Boom—and Bubble Fears

Nvidia’s 70% Growth Call Supercharges AI Boom—and Bubble Fears
Nvidia has turned the AI spending frenzy into a $96 billion quarter—and now says the next act could be even bigger. The catch is that the company’s confidence rests on an ecosystem whose financing is drawing as much attention as its chip sales.

For the quarter ended July 26, Nvidia reported $96.2 billion in revenue, up 106% from a year earlier, with net income climbing 126% to $59.7 billion. Data-center sales reached $89 billion, underscoring how completely AI infrastructure has become the engine of its business.

On Wednesday, the company went further than usual: it projected fiscal 2028 revenue growth of 70%, far above the roughly 44% analysts had expected. The forecast implies sales potentially approaching $700 billion, while management guided the next quarter to $108 billion, which would put Nvidia over $100 billion in quarterly revenue for the first time.

Jensen Huang framed the surge as a structural shift, not a temporary rush. “AI has reached its inflection point,” the chief executive said. “Now, compute is revenue.” He also cautioned that supply—not demand—is the immediate ceiling: “Our entire supply chain is challenged, and it’s everybody; everybody is really running flat out.”

That gap between demand and available chips is central to Nvidia’s bull case. Huang said the company has supply for about 70% of current customer demand, while the faster-growing non-hyperscale market—sovereign AI projects, neoclouds, startups and enterprises—accounts for roughly half the business.

Yet the earnings call also revived concerns over Nvidia’s investments, capacity guarantees and credit support for customers such as frontier AI labs. CFO Colette Kress acknowledged the criticism directly: “We recognize the scale of this support, and we know some will call this circular financing. We see it differently.” Her argument is that independently financed, capacity-starved customers create durable demand; skeptics see a risk that Nvidia is helping fund the buyers of its own hardware.

The market initially hesitated, then sent the shares higher after the forecast. Outside Wall Street, Elon Musk amplified Epoch AI Research’s contention that conventional U.S. GDP figures miss much of Nvidia’s contribution, potentially understating growth by about 0.3 percentage points over the past year.

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