Nvidia targets 70% revenue growth for fiscal 2028 as the rollout of its Vera Rubin architecture promises to slash AI inference costs and drive massive data center demand.
CEO Jensen Huang said Nvidia could sell twice as many chips next year and management guided to roughly 70% revenue growth in fiscal 2028, reinforcing a bullish outlook.
Amazon is cited as one of the top hyperscalers planning massive AI infrastructure spending, a demand driver for Nvidia but a significant capital outlay for Amazon.
Microsoft is named among hyperscalers expected to spend heavily on AI infrastructure, supporting Nvidia demand while representing a large cost for Microsoft.
Anthropic is mentioned as one of the AI labs agreeing to potentially slow AI development, which could reduce demand for Nvidia chips.
OpenAI is cited among AI labs considering a slower development pace, a potential headwind for Nvidia's chip sales.
xAI is named as one of the AI labs agreeing to consider slowing development, which may temper demand for AI infrastructure.
Nvidia CEO Jensen Huang projects a potential doubling of chip sales next year, supported by the launch of the high-performance Vera Rubin architecture. Despite this bullish outlook, the company faces risks including massive capital expenditure requirements for hyperscalers like Amazon and Microsoft, and potential development slowdowns at major AI labs.
Vera Rubin provides up to 30 times more performance than previous systems and reduces AI inference token costs by 97%, which is expected to accelerate AI adoption and increase demand for Nvidia's hardware.
Key risks include the high cost of AI infrastructure for hyperscalers, rising interest rates impacting debt-financed projects, potential development slowdowns at leading AI labs, and Nvidia's own financing of roughly 25% of its fiscal 2028 sales.