Nvidia Sees 70% Growth as AI Boom Accelerates

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. Bloomberg Tech is live from the heart of Silicon Valley with Ed Ludlow in San Francisco.

**Ed Ludlow** (0:22)
This is Bloomberg Tech coming up. Nvidia sees 70% revenue growth next fiscal year, far exceeding analysts' estimates will break down the chip maker's astonishing outlook. Plus Salesforce jumps after giving an outlook for strong revenue expansion and deepening its ties with Anthropic. And Hugging Face comes out with its newest robot, a duck that can walk and talk. And even RollerScape, we're gonna be joined by Hugging Face co-founder and Chief Science Officer, Thomas Wolfe. Nvidia is the story. Nvidia is the driver of markets. Stock is up now more than 8% accelerating and on track for its biggest jump since April of 2025 In very quick succession, the stock has changed direction and the story has changed. That is driving different indices higher. The news, top line growth, 70% in fiscal 28 Let's bring in Bloomberg's Ian King. Nvidia does not give full year fiscal year outlooks, but they did and it's a big one.

**Ian King** (1:23)
Absolutely, everything changed with that one phrase from Collette on the call yesterday. And just for context, Wall Street was expecting a brilliant year next year. It was expecting 45% growth and then Nvidia comes in and says, no, it's going to be more like 70 and guess what? If we had enough supply, if we get more supply, it could double. That's the amount of orders we've got.

**Ed Ludlow** (1:44)
I want to bring up something that Collette Crest, the CFO told you and I on the phone, which is basically the revenue forecasts would be greater, were it not for supply constraints. The supply constraint is still severe. Explain that number and what Collette Crest was trying to get at.

**Ian King** (2:01)
Yeah, I mean, she said to us, you'll remember, I am making a point here. I am telling everybody, whether it's the memory chip makers, whether it's the made-to-order silicon makers, everybody in the supply chain, hey, demand is here, get working, get putting more production in place. We can do this. There's more business to be done.

**Ed Ludlow** (2:21)
There is not a perfect set of numbers because ultimately there is some margin impact from higher memory prices.
Nvidia will raise prices of its technology at the start of next year. Explain that, that sort of bottom line situation for us.

**Ian King** (2:37)
Yeah, I mean, we kind of laughed with Collette on the call, saying how many CFOs go on a call, lower their margin by three percentage points, and still get a stock rise, and that's non, right? So what's going on there is memory has just got out of hand. Memory has to be packaged with Nvidia's products. There just isn't enough of it. There's demand everywhere, and Nvidia's had to pass that along. And of course, that's having an impact on margins.

**Ed Ludlow** (3:04)
All right, Bloomberg's Ian King. Thank you very much indeed. It was a very interesting set of numbers call.
And then the reaction. Our next guest says the real surprise is in Nvidia's earning the durability of that growth outlook. Doug Huber is Deputy Chief Investment Officer at Wealth Enhancement Group, which across funds has about $1.9 billion worth of Nvidia's stock. What do you mean by durability? What was the evidence you saw that this goes beyond, I suppose, fiscal 28?

**Doug Huber** (3:32)
Yeah, I think, frankly, it really did shift the dynamic, to me at least, in that massive outlook they put forward. I think it shifted the thought process of is demand slowing, and moving this to is the industry physically able to build enough compute to satisfy it. I think that was that shocking number that Ian was just talking about with 70 percent growth next year, but that's supply constraint. I mean, it could be 100, 120 And so I think everybody thought this cycle was kind of nearing, and they were pretty clear that there was a lot of demand, not only through hyperscalers, but also through the ASI channels.
And so I think that's really compelling.

**Ed Ludlow** (4:10)
So Doug, let's go there. When Ian and I were on the phone with the CFO, Collette Cress, there was a heavy emphasis on the hyperscalers still surging. They've already put their orders in for next year.
If there was a set of numbers under the hood, it was the concentration of business still in the hyperscalers. What do you make of that now and the idea that Nvidia feels that broadens beyond fiscal 28?

**Doug Huber** (4:34)
Yeah, I think she pointed out on the call that they are buyers of chips, essentially, where some of the other channels, it's much more of a total infrastructure, right? And I think that build out takes longer. I think the integrations take longer. And so, yes, I think we expected to see better numbers, or at least potentially a little bit better numbers from those other channels, but it does sound to me, and I think they alluded to the fact that that is coming through, that's pulling through. And you can see those as being really large channels, whether it's the Sovereigns, the Neo Clouds, the Enterprise Solutions. I mean, I think that will be an interesting channel for them. The question I have, and I don't think they really touched on it to date is, did they get the same margin out of that, given that it sounds like it's a higher lift to implement?