Nvidia Jumps 7 Percent as Supply Not Demand Caps Its Growth

Nvidia shares rose 7 percent after the chipmaker told investors that supply, not artificial intelligence demand, now sets the ceiling on how fast the company can grow.

Finance chief Colette Kress guided to 70 percent revenue growth for fiscal 2028, and Jensen Huang said actual demand runs well above that number.

Nvidia cannot build to meet it, because Taiwan Semiconductor remains constrained and memory chips are in short supply.

The quarter brought a record 96.2 billion dollars in revenue, with data center sales alone more than doubling to 89 billion.

Customers outside the largest cloud providers delivered 40.3 billion dollars, up 138 percent on the year, which Nvidia offered as evidence its base is broadening.

The rally broke a run of four quarters in which the stock fell the day after results, though analysts named custom chips from OpenAI and the cloud giants as a threat to its hold on the market.

Guidance a year out is a promise, and Nvidia had never made one before. Scarcity is what allows it: when supply caps output, every quarter sells out and a forecast looks conservative by construction. The Verge puts the quarter at 96.2 billion dollars, with 89 billion from data centers and profits of 59.7 billion. The people paying for the shortage are consumers, whose graphics cards are already absorbing higher memory prices. CNBC reports the company is courting Chinese open models while warning Washington off restricting them. The 108 billion dollar guide for next quarter is the number to test.