Nvidia's second-quarter revenue reached $96.2 billion, a 106% year-over-year increase, with data center revenue reaching $89 billion, a 117% year-over-year increase—both very strong. However, after the earnings release, the stock price initially fell by about 3%, indicating that market expectations were already very high—the "better-than-expected" performance itself was no longer a sufficient catalyst.
What truly revived the stock price was CFO Colette Kress's statement on the conference call: revenue growth for fiscal year 2028 is projected to be approximately 70%. The market had previously expected growth of only about 44%-45% for this year, thus representing a significant upward revision of long-term growth expectations in one go. More importantly: the 70% figure is not actually demand growth, but rather "achievable growth under supply constraints." This statement is the most noteworthy part of the entire news. Customer demand growth is approximately 100%—Nvidia is currently constrained by its supply chain and can only meet a portion of this demand—therefore, the company's current fiscal year 2028 revenue growth target is approximately 70%. In other words, Nvidia is not worried about insufficient demand, but rather insufficient production capacity.
