NVIDIA is projecting revenue growth exceeding 70% for fiscal year 2028, a dramatic acceleration that signals the company's AI chip business is entering a new expansion phase. The forecast, revealed during the company's earnings call on August 26, 2026, significantly outpaces market expectations of around 40% growth and reflects surging demand from hyperscale cloud providers, enterprises, and government agencies building AI infrastructure at unprecedented scale.

What's Driving NVIDIA's Explosive Growth Forecast?

NVIDIA's second quarter fiscal 2027 earnings, covering the period through July 2026, showed total revenue of $96.22 billion, beating analyst expectations by $4.06 billion. The data center segment, which powers AI workloads, generated $89 billion in revenue this quarter, with sequential growth of $13.8 billion driven primarily by shipments of the Blackwell series GPU. The company is now preparing to transition customers to its next-generation Rubin series starting in the third quarter, which will gradually replace Blackwell and drive continued product iteration.

The 70% growth guidance for fiscal 2028 represents a significant upward revision from earlier projections. When combined with current Blackwell performance, NVIDIA now expects cumulative revenue from Blackwell and Rubin chips spanning calendar years 2025 through 2027 to reach between $1.2 trillion and $1.3 trillion, up from the previously stated $1 trillion target.

How Is NVIDIA Securing Its Supply Chain and Market Position?

Beyond chip sales, NVIDIA is taking aggressive steps to lock in manufacturing capacity and expand its influence across the AI infrastructure ecosystem. The company disclosed three new categories of financial commitments that reveal its strategy for maintaining dominance:

• Procurement Commitments: NVIDIA has secured $279 billion in signed procurement commitments for memory chips and components, with $160 billion of that newly added this quarter for fiscal years 2028 and 2029, effectively locking in high-bandwidth memory (HBM) and DRAM production capacity ahead of competitors.
• AI Cloud Partnerships: The company is committing to buy back or underwrite computing capacity from cloud infrastructure providers like CoreWeave and Nebius, with $36 billion in exposure, while sharing revenue from their resale to customers.
• Infrastructure Guarantees: NVIDIA is guaranteeing land, power, and resource commitments for AI cloud partners with approximately $3.5 billion in risk exposure, and has taken on a 20-year lease for a 4.25-gigawatt data center in Ohio exclusively for OpenAI workloads, with an additional 3.8-gigawatt expansion option.

These commitments signal that NVIDIA is not simply selling chips; the company is becoming a financial and operational partner in building the physical infrastructure that powers AI development globally. The company also announced a $500 billion computing power financing platform to support smaller customers and government agencies that cannot access capital through traditional channels.

What Role Are Cloud Providers Playing in NVIDIA's Growth?

Amazon Web Services (AWS) and NVIDIA announced a major expansion of their 16-year partnership on August 26, 2026, committing to deploy 2 million additional NVIDIA GPUs across AWS infrastructure during 2027 and 2028. This deployment will include Blackwell Ultra, Rubin, and Rubin Ultra chips, representing one of the largest infrastructure investments ever made by a cloud provider.

The AWS-NVIDIA collaboration extends beyond GPU deployment. The companies are integrating NVIDIA's Vera CPU architecture into AWS infrastructure, expanding support for NVIDIA's NVLink Fusion high-speed chip interconnect technology with custom high-bandwidth memory, and building AI factories for the U.S. government with 100,000 GPUs on secure AWS infrastructure for federal and national-security workloads.

"Customers want the freedom to choose the best tools for their AI workloads, and they want confidence that everything works seamlessly together," said Matt Garman, CEO of AWS. "That's why we've invested deeply with NVIDIA to make AWS the best place to run NVIDIA AI technologies, optimizing performance across our infrastructure from networking and security to deployment."

Matt Garman, CEO of AWS

Jensen Huang, NVIDIA's founder and CEO, emphasized the scale of the partnership, stating that the expanded collaboration reflects customers' demand for NVIDIA's platform on AWS and represents an unprecedented pace of AI infrastructure deployment.

How Are Enterprise and Government Customers Reshaping NVIDIA's Business?

NVIDIA's earnings report revealed a significant shift in customer composition. The company reorganized its financial disclosures to separate revenue from hyperscale customers (large cloud providers) from revenue from ACIE customers, which includes industrial, enterprise, and sovereign government buyers. This quarter, hyperscale customers generated $48.7 billion in revenue with sequential growth of $5.7 billion, while ACIE customers contributed $40.3 billion with sequential growth of $8.1 billion, making enterprise and government the largest incremental driver of revenue growth.

This shift reflects a strategic diversification away from dependence on a handful of hyperscale cloud providers. As companies like Amazon, Google, and Meta develop their own custom AI chips, NVIDIA is deliberately cultivating relationships with smaller cloud providers, enterprises, and government agencies that lack the resources to build proprietary silicon. The $500 billion computing financing platform is designed to accelerate this transition by making NVIDIA-powered infrastructure accessible to organizations that previously could not afford it.

What Are the Risks to NVIDIA's Growth Trajectory?

While the 70% growth forecast is bullish, NVIDIA faces headwinds. Gross margin guidance for the third quarter of fiscal 2028 is 74%, down one percentage point sequentially and below market expectations of 75%, reflecting pressure from Rubin production ramp-up costs and rising memory component prices. Additionally, the company's massive financial commitments to infrastructure guarantees and buyback obligations create contingent liabilities that could materialize if cloud partners or government customers fail to meet their own revenue targets.

The competitive landscape is also shifting. Major cloud providers are accelerating their own chip development efforts, and Chinese AI companies are offering lower-cost alternatives. NVIDIA's strategy of deepening partnerships with AWS, expanding into enterprise markets, and securing government contracts appears designed to offset these long-term risks by making the company indispensable across multiple customer segments.