Nvidia's 70% Growth Forecast Is a Supply Ceiling. Demand Is Actually Stronger Than That.

• Nvidia revenue grew 106% to $96B, fourth quarter of accelerating growth • Data center revenue $89B; 70% growth forecast for FY2028 • Nvidia finances AI build-out, secures $500B+ from third parties Nvidia posted Q4 results with revenue up 106% to $96B, driven by data center sales of $89B. CEO Jensen Huang highlighted AI reaching an inflection point. The company forecasts 70% revenue growth for FY2028, constrained by memory supply. CFO Colette Kress projected $1.3T in hyperscaler capex and a $2T cloud backlog. Nvidia is financing AI infrastructure through take-or-pay contracts and third-party capital, generating hardware and rental revenue. The company secured 4.25 GW of power for OpenAI's compute. Networking and Vera Rubin platform sales are ramping. Custom chips like OpenAI's Jalapeno present competition, but scale challenges remain. Rising interest rates could impact financing access. Shares trade at 18x forward earnings with market cap of $5.2T.