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AI Chips & Compute

Nvidia reports $96B quarterly revenue, warns supply constraints to persist through fiscal 2028

Nvidia reported $96 billion in quarterly revenue, up over 100% year over year, but guided to only 70% growth in fiscal 2028 due to supply limits, while demand may double. The gap is reshaping AI infrastructure procurement.

AI News Feed · 2026-08-28 08:48

Kress said the surge in AI demand is driving a global infrastructure buildout, supported by hyperscalers, AI labs, AI natives, enterprises and sovereign customers. She added that Nvidia is not just selling chips but a full-stack AI factory platform that delivers superior economics for customers and captures a larger share of the data center total addressable market.

Chief Executive Jensen Huang said supply constraints will persist at least through the end of fiscal 2028, and that the entire supply chain is challenged. He explained that Nvidia rarely guides a full year ahead, but wanted customers, shareholders and suppliers to see the same view. Huang noted that land, power and shell often take two to three years to secure, and said capacity will come online every day rather than at a single point in time.

Nvidia has moved further upstream and downstream, including securing 4.25 gigawatts of capacity at SoftBank Energy’s Portsmouth campus for OpenAI. Kress said the site could support multiple upgrade cycles over 20 years. The report noted that in a supply-constrained market, contract certainty is worth far more than a few points of discount, and that enterprises should consider multiyear allocation commitments, named-quantity contracts and explicit fallback tiers in AI infrastructure requests for proposals.

The report’s second key point is that the unit of purchase is no longer a GPU but a gigawatt. Nvidia’s revenue opportunity per gigawatt of data center capacity is about $18 billion with Hopper, $25 billion with Grace Blackwell, and $40 billion with Vera Rubin. This now spans the Vera CPU, Rubin GPU, NVLink, InfiniBand and Ethernet, and the Groq language processing unit. Huang said general-purpose computing in the Moore’s Law era was around $3 billion to $5 billion per gigawatt.

Networking revenue set another record, up 18% sequentially, with Spectrum-X Ethernet up 2.6 times year over year. The Grace CPU surpassed $5 billion on a trailing-12-month basis, and Vera is in full production with shipments underway to Oracle Cloud Infrastructure and, this quarter, AWS. Nvidia expects CPU revenue to more than double in fiscal 2028.

For IT buyers, the quarter underscores that accelerators should no longer be evaluated in isolation. The bill of materials for an AI cluster increasingly comes as part of a larger infrastructure decision, making procurement a longer-horizon, contract-driven exercise.