Nvidia's recent earnings call revealed a significant revenue growth projection of 70% for 2028, which sent the stock up 4% in after-hours trading. CFO Colette Kress described this outlook as 'supply-constrained,' indicating that actual growth could be even higher if not for current supply chain issues, particularly shortages in memory chips.
Analysts, including Joseph Moore from Morgan Stanley and Stacy Rasgon from Bernstein, expressed curiosity about the basis for this guidance, especially since it marks a shift from Nvidia's previous practices. Rasgon noted that this projection could translate to a $200 billion increase compared to earlier forecasts.
The company's customer base is becoming more concentrated, with just five clients now accounting for 70% of accounts receivable, up from 56% a year ago. This trend raises questions about dependency on a limited number of customers while Nvidia continues to focus on expanding its capacity and supporting the AI supercycle narrative rather than prioritizing shareholder returns