Nvidia’s blowout quarter sends Jensen Huang into top six billionaires
Demand “much greater than 70 per cent”
Chief financial officer Colette Kress said on the earnings call that Nvidia expects revenue growth of 70 per cent for fiscal year 2028 (running from February 2027 to January 2028) well above the 44 per cent analysts had anticipated. Huang went further, saying demand was “much greater than 70 per cent,” but that the company is constrained by how much product it can supply.
Taiwan Semiconductor Manufacturing Co., Nvidia’s primary manufacturer, continues to face supply constraints, while memory chips, a key component of Nvidia’s systems, also remain in short supply, according to CNBC.
Huang sought to broaden the investment case beyond a handful of hyperscalers. “This time last year, one lab alone was driving the build-out,” he said on the call. “Today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online with strong momentum across the U.S. and around the world.”
Analyst reaction and price target upgrades
The results triggered a wave of analyst upgrades. Raymond James raised its price target on Nvidia to US$515 from US$352, the most bullish among major investment firms, while Bernstein lifted its target to US$400 from US$315 and JPMorgan moved to US$320 from US$280, according to Forbes.
“Nvidia’s earnings results tell you that the valuation today is cheap. There is plenty, plenty of upside in the Nvidia share,” said Siddy Jobe, senior portfolio manager at Econopolis Wealth Management’s Exponential Technologies Fund, speaking on CNBC’s Squawk Box Europe.
