Nvidia CEO Jensen Huang has stated that the company's projected revenue growth for the 2028 fiscal year is conservative due to ongoing memory shortages. While Nvidia anticipates a 70% revenue increase, Huang indicated that the "unconstrained" growth potential is significantly higher, noting that the current market is constrained by limited memory availability.
"The unconstrained would be a lot higher. We grew 100% year-over-year this year. The unconstrained is significant. And so we're just going to have to work hard to get more capacity. And we have a large supply chain," Huang explained during a recent earnings call. He confirmed that the company is experiencing "extreme pricing conditions in memory" which are expected to persist into the next year.
Nvidia's financial performance highlights a strong reliance on its data center segment. In the latest quarter, the company reported $96.2 billion in revenue, with a 75% gross margin. Data center revenue alone accounted for $89 billion, marking a 117% increase year-over-year. In contrast, the "Edge Computing" segment, which encompasses gaming, workstations, AI PCs, and robotics, generated $7.1 billion, a 27% increase from the previous year. Nvidia noted that increases in Edge Computing were driven by strong sales of Blackwell workstations, but were partially offset by slower consumer PC sales, attributed to elevated memory and systems prices.
The company's gaming division is not explicitly detailed in earnings reports, instead being grouped within the broader Edge Computing category. This has led to speculation about the direct impact of current market conditions on gaming hardware sales. Despite the broader trends, Nvidia is actively working to expand its supply chain capabilities to meet demand.
"We have a really gigantic supply chain. And so we have incredible partners, and we've secured a lot of supply, but we just need a lot more," Huang added. The global memory crisis is a widespread issue, with other major manufacturers like Samsung also issuing warnings about severe supply constraints. This situation is impacting component costs and potentially limiting Nvidia's ability to capitalize fully on its market position.