Nvidia’s Revenue Growth and Future Projections
Nvidia (NASDAQ: NVDA) reported remarkable growth, with revenue skyrocketing to $303 billion over the trailing 12 months, driven by the AI boom. For fiscal Q2 ending July 26, the company recorded $96 billion, marking a 106% year-over-year increase. Management projects approximately 70% revenue growth by fiscal 2028, bolstered by the launch of its Vera Rubin chipset platform, which started shipping in August.
In comparison, hyperscalers like Amazon generated nearly $49 billion in revenue last quarter, comprising about half of Nvidia’s total revenue. However, revenue from other sectors, including neocloud and industrial customers, surged by 138% year-over-year to $40 billion, indicating strong growth beyond major customers. Nvidia’s stock trades at 15 times next year’s earnings estimate, viewed as undervalued in light of its rapid growth.
Analysts project Nvidia could achieve $411 billion in revenue for fiscal 2027, with expectations of a 65% jump to $678 billion by fiscal 2028. Despite potential risks such as data center spending constraints, Nvidia’s continued innovations make it a compelling investment choice moving forward.
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