Nvidia guides to 70% revenue growth as Wall Street lags

Nvidia has been the go-to AI investment since the AI arms race began in 2023. Its GPUs became the default computing unit of the AI industry, and its CUDA platform helped it hold a position as an almost universal AI computing platform — a moat the article credits for keeping it at the top of the AI computing leaderboard despite competitors making both GPUs and custom AI chips.

The article frames the Q2 earnings call as a turning point in expectations. CFO Collette Kress said Nvidia expects 70% revenue growth in fiscal 2028, a pace the article says Wall Street had not been forecasting. Nvidia also noted that demand for its hardware still outstrips supply, and it has long projected annual AI data center spending will reach $3 trillion to $4 trillion by 2030 — a range the article calls increasingly reasonable given hyperscaler outlays.

What the outcome hinges on is whether that demand actually shows up in revenue. The article argues the market is not pricing in the 70% forecast, given Nvidia trades at 24 times forward earnings against the S&P 500's 24.8 times trailing earnings. It also points to Broadcom, which designs custom AI chips competing with Nvidia's GPUs and has guided its AI semiconductor revenue to double in 2027 and double again in 2028. If Nvidia can hold a similar pace in calendar 2028, the article suggests the multiyear case may hold — though that depends on hyperscaler capital spending actually reaching the levels projected.