Nvidia’s latest earnings call is in and, as you can probably guess, the GPU maker turned AI hardware creator is raking in cash hand over fist. But alas, a projected 70% revenue increase for the 2028 fiscal year is apparently conservative, as the blasted memory crisis is getting in the way. You know, that memory crisis, which Nvidia’s AI aspirations are currently making worse.
When asked about that 70% figure specifically, CEO Jensen Huang confirmed that it’s a “constrained” number that is informed by the lack of available memory in the market
Huang says, “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”.
Nvidia’s financials paint an interesting picture, specifically one where data centers account for the majority of revenue, and consumer demand lacks in response. Nvidia made $96.2 billion in the latest quarter, with a gross margin of 75% and data center revenue accounting for $89 billion. That’s a 117% jump from last year.
Annoyingly, Nvidia doesn’t report gaming in financial earnings, and instead wraps it into ‘Edge Computing’, which includes gaming, workstations, physical AI PCs and robotics. That accounts for $7.1 billion in the latest earnings call. That’s a 27% jump from last year.
In regard to Edge Computing, Nvidia says “increases were driven by strong sales of Blackwell workstations, partially offset by slower consumer PC sales that were tempered by elevated memory and systems prices.”
As of today, the RX 9070 XT and 9060 XT are sitting atop the Amazon and Mindfactory GPU sales. It’s not yet clear if pricing, stock, or a combination of both are responsible for this shift.
Huang says many investors expressed concerns regarding gross margins with rising component costs, and confirms “we are experiencing extreme pricing conditions in memory. The magnitude of the price increase has exceeded our prior expectations and [is] headed even higher into next year.”
However, he argues, “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.”
It seems the memory crisis is really hitting everyone and is unlikely to end any time soon. Even the likes of Samsung has warned of a ‘severe’ memory supply crisis next year. Pour one out for poor old Nvidia, who will have to pay more for the fire it is currently throwing even more wood onto.
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