Reports emerged this week that NVIDIA CEO Jensen Huang expects the company to sell twice as many chips next year as it will this year — a bold projection delivered at an AI summit alongside King Charles III in Scotland. The forecast follows NVIDIA's recent guidance of 70% revenue growth for fiscal year 2028 (ending January 2028), which implies roughly $673 billion in total revenue — a figure that would vault the chipmaker past Apple and Alphabet in sales. For shareholders, the question is whether this demand story can survive margin pressure, supply bottlenecks, and the sheer physics of scaling.

  • The Demand Isn't Theoretical — It's Global and Broadening. Huang contrasted today's landscape with a year ago, when "one lab alone was driving the build-out." Now, he says, "we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel."

NVIDIA's customer base is broadening beyond the biggest cloud companies to include government-backed AI programs, startups, and enterprises — reducing the risk that one buyer's spending pullback could crater growth.

  • Supply, Not Demand, Is the Real Bottleneck. Management itself admits NVIDIA has supply for only about 70% of expected demand . The company expects supply to "remain a bottleneck" at least through the end of fiscal 2028 . That means the 70% revenue guide is not a demand forecast — it's a manufacturing ceiling. Investors are effectively betting on execution: can NVIDIA and its partners build fast enough?

  • Rising Memory Costs Are Eating Into Profits. Gross margin — the profit left after making each chip — is expected to fall to 74% this quarter and bottom at 71–72% in Q4 . CFO Colette Kress flagged "extreme pricing conditions in memory," with costs exceeding prior expectations and headed higher . NVIDIA plans price increases in fiscal 2028 to recover margins toward 72–73% , but the squeeze means selling more chips won't translate dollar-for-dollar into proportionally higher profits.

  • The Next-Generation Chip Ramp Is a Make-or-Break Moment. NVIDIA's CFO highlighted a $40 billion revenue opportunity from its next-generation processors built for advanced AI agents, calling them the "fastest product ramp in NVIDIA's history."

Last quarter, net income more than doubled to $53.95 billion . If the new chips deliver, the growth story extends well into 2028. If production stumbles, those doubled-sales projections stay on paper.