NVIDIA
The chipmaker expects revenue to grow about 70% in fiscal 2028, a forecast that would put it well ahead of the roughly 44% growth analysts had expected. Getty Images

Nvidia is on course to become the second-largest U.S. technology company by annual revenue as the artificial intelligence boom drives sales growth at a pace rarely seen for a company of its size.

The chipmaker expects revenue to grow about 70% in fiscal 2028, a forecast that would put it well ahead of the roughly 44% growth analysts had expected.

Based on Wall Street's consensus estimate of about $396 billion in fiscal 2027 revenue, sales could reach roughly $673 billion the following year, potentially pushing Nvidia past Apple and Google parent Alphabet and leaving only Amazon ahead among major U.S. technology companies, CNBC reported.

The unusually long-range forecast came after another quarter of rapid expansion. Nvidia reported second-quarter revenue of $96.2 billion, up 106% from a year earlier and 18% from the previous quarter. Its data center business, which houses much of its AI chip sales, generated a record $89 billion, a 117% year-over-year increase. Adjusted earnings were $2.22 per share.

Read more

Nvidia expects third-quarter revenue of about $108 billion, while its fiscal 2028 outlook is substantially stronger than analysts had anticipated. Reuters reported that the company is benefiting from continued spending on AI infrastructure and growing demand for its next-generation Vera Rubin processors. The company is also contending with tight supplies of memory and other components as AI data center construction consumes increasing amounts of hardware.

CEO Jensen Huang told analysts that demand is running above the 70% growth Nvidia believes it can deliver. "Our demand is much greater than 70%," Huang said, adding that available supply allows the company to commit confidently to that level of growth. Nvidia does not typically provide revenue guidance so far in advance, but Huang said the company has greater visibility into customers' computing requirements and wanted suppliers and infrastructure partners to have the same information.

Demand is also becoming less concentrated among the giant cloud companies that fueled the first stage of the generative AI spending boom. Nvidia said regional AI providers, neocloud companies, startups and enterprises are becoming a larger part of its customer base. About half of its data center business now comes from customers outside the major hyperscalers, Fortune reported.

Nvidia is helping finance the infrastructure needed to support that expansion. Earlier in August, the company announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aimed at mobilizing more than $500 billion in third-party capital for AI infrastructure over time.

The scale of Nvidia's growth is already visible in its annual results. Revenue reached $215.9 billion in fiscal 2026, up 65% from the prior year, while data center revenue totaled $197.3 billion. Its latest forecast suggests the company expects that expansion to accelerate again even as its revenue base becomes substantially larger.