Nvidia’s 70% Growth Call Ignites AI Boom—and Financing Fears

Nvidia’s 70% Growth Call Ignites AI Boom—and Financing Fears
Nvidia has turned the AI boom into numbers too large for Wall Street to ignore. Its latest forecast, however, also sharpened the question hanging over the sector: how much of this demand can stand without Nvidia helping finance the ecosystem buying its chips?

On Wednesday, the chipmaker reported $96.2 billion in fiscal second-quarter revenue, up 106% from a year earlier and ahead of analysts’ expectations. Data-center sales reached $89 billion, underscoring that AI infrastructure—not consumer graphics—now drives the company’s extraordinary scale. “AI has reached its inflection point,” CEO Jensen Huang said. “Now, compute is revenue.”

After the market closed, Nvidia delivered an even bigger surprise: its first year-ahead outlook, projecting roughly 70% revenue growth in fiscal 2028, far above the 44% analysts had been modeling. Huang called the coming year “pretty extraordinary” and said Nvidia had offered the unusual forecast so investors had “the same set of information.”

The company’s case is that demand is broadening rather than resting on a handful of Big Tech budgets. CFO Colette Kress said non-hyperscale customers—including sovereign AI projects, regional cloud providers, enterprises and edge data centers—would account for roughly half of data-center business. Huang said demand exceeds what Nvidia can supply: “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%.”

Yet the forecast did not erase the AI bubble debate. Nvidia has backed customers and infrastructure projects with investments, guarantees and selective credit support, drawing accusations that AI companies are recycling capital through one another. Kress acknowledged the critique—“some will call this circular financing”—but insisted Nvidia sees proven technology, surging usage and constrained compute capacity instead.

The broader bull case has gained a public echo. Elon Musk amplified Epoch AI Research’s claim that U.S. GDP data miss much of Nvidia’s contribution, potentially understating annual growth by about 0.3 percentage points. For investors, Nvidia’s numbers are powerful evidence of real demand; its financing ties remain the unresolved caveat.

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