Nvidia (NASDAQ: NVDA) reported a revenue of $96 billion and a net income of $59 billion for the latest quarter, driven by its leadership in the AI chip market. The company anticipates a 70% revenue growth for fiscal year 2028 and aims to achieve $20 billion in sales from its new stand-alone central processing unit (CPU) offerings.
Despite strong demand for GPUs and emerging AI technologies, Nvidia’s gross margins are expected to decline from 75% to 71-72% due to rising memory prices prompted by heightened demand for AI infrastructure. This pricing pressure is attributed to “extreme pricing conditions in memory,” according to the company’s finance chief, Colette Kress.
As Nvidia positions itself for continued growth in the AI sector, it remains optimistic about its market strength, although investors should brace for potential fluctuations in profitability.
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