NVIDIA guides 70% revenue growth

NVIDIA gave investors an unusual number with its latest earnings: a full-year growth target. On August 26, the company reported fiscal second-quarter revenue of $96.2 billion, up 106% from a year earlier, with data center revenue of $89.0 billion, up 117%. It then said revenue in the fiscal year ending January 2028 would grow about 70%, a forecast that stood out because Nvidia typically gives only near-term guidance. That combination — a triple-digit quarterly gain and a next-year growth target far above consensus — reset the immediate debate around the stock. Barchart, citing Wall Street reactions after the report, said several analysts raised price targets and highlighted management’s claim that demand could support even faster expansion if supply were available. (investor.nvidia.com) ### Why did the 70% figure matter so much? Colette Kress, Nvidia’s finance chief, told analysts that customer forecasts would support growth closer to 100%, but supply constraints would hold the company to about 70%, according to reports of the earnings call. That mattered because it framed the limit as manufacturing and component availability rather than demand softness. (barchart.com) Jensen Huang, Nvidia’s chief executive, also pointed to supply bottlenecks. “Our entire supply chain is challenged,” he told analysts, according to Barchart’s summary of the call, adding that the company had supply for 70% of what customers wanted. ### What did the quarter itself show? Nvidia said GAAP and non-GAAP gross margins were both 75.0% in the quarter ended July 26, 2026, and diluted GAAP earnings per share were $2.46. (barchart.com) The company’s results release described demand for AI infrastructure as broad-based, with the data center business still doing most of the work. The scale of the jump helps explain why investors treated the forward guide seriously. Revenue rose from $46.7 billion in the comparable quarter a year earlier to $96.2 billion this time, according to Nvidia’s fiscal 2026 and fiscal 2027 second-quarter releases. ### Why was Ark Invest buying more shares right after earnings? ARK Invest added more than 243,000 Nvidia shares after the results, according to Barchart’s account of ARK trading activity. (investor.nvidia.com) ARK’s site says it publishes daily trade notifications and portfolio holdings for its actively managed ETFs, making those purchases visible to the market. (nvidianews.nvidia.com) Cathie Wood’s firm had already been building the position earlier in August, Barchart reported, before adding again after the earnings release. That made the post-results buying look less like a one-day trade and more like a continuation of an existing bet on AI infrastructure demand. (barchart.com) ### Where does the margin risk sit if demand is this strong? HBM — high-bandwidth memory used alongside AI accelerators — remains one of the clearest cost variables in Nvidia’s supply chain. The source briefing’s margin warning centered on pricing from SK hynix, Samsung and Micron, the companies racing to supply next-generation HBM for AI systems. Those suppliers are all pushing new products into the market. Micron said in March it had entered high-volume production of HBM4 designed for Nvidia’s Vera Rubin platform, while Samsung said in May it began shipping 12-layer HBM4E samples to major customers. (barchart.com) SK hynix, for its part, has described 2026 as an HBM-led memory supercycle and expanded its Nvidia partnership around next-generation memory. ### What should investors watch next? Nvidia’s next quarterly report will show whether the company can translate that August 26 outlook into another step up in revenue while holding gross margin near the 75% level it posted in the latest quarter. ARK’s daily trade disclosures, and announcements from SK hynix, Samsung and Micron on HBM output, will also give investors fresh readouts on whether the constraint is easing on the supply side. (investor.nvidia.com) (investors.micron.com)