Nvidia has delivered another powerful signal that the artificial intelligence boom still has significant room to run, forecasting around 70% revenue growth in its next fiscal year as demand for AI computing continues to surge.

The forecast is substantially stronger than the roughly 45% growth that investors had previously expected, reinforcing Nvidia’s position at the centre of the global AI infrastructure build-out. The company also reported quarterly revenue of $96.2 billion, more than double the level recorded a year earlier. (Financial Times)

Nvidia’s data-centre business remains the main engine behind the growth. Revenue from the division reached approximately $89 billion, representing a 117% increase from a year earlier. Demand from major cloud providers and other large technology companies continues to drive purchases of Nvidia’s advanced processors. (Financial Times)

The company expects revenue of about $108 billion in the coming quarter, ahead of Wall Street expectations. Nvidia and Amazon Web Services are also planning to deploy an additional 2 million GPUs during 2027 and 2028, illustrating the scale of investment still being made in AI infrastructure. (Reuters)

Nvidia pushes back on financing concerns

The strong outlook comes as Nvidia faces growing questions about its strategy of investing in companies and projects that ultimately purchase its chips.

Critics have described some of these arrangements as “circular financing”, arguing that Nvidia’s investments and financing commitments could help customers buy Nvidia hardware, creating a cycle in which the company supports the very demand that drives its revenue.

Nvidia’s chief financial officer, Colette Kress, defended the strategy, arguing that the company is supporting AI developers and infrastructure providers because demand for computing capacity remains far greater than available supply. She said Nvidia expects attractive returns from its investments and does not view the arrangements as simply financing chip purchases. (The Wall Street Journal)

The company has committed significant resources to the wider AI ecosystem, including support for major data-centre projects. Nvidia has also been working with financial institutions to mobilise hundreds of billions of dollars in capital for AI infrastructure. (The Wall Street Journal)

Demand remains stronger than supply

Nvidia executives said the biggest constraint is increasingly the availability of components rather than customer demand.

A shortage of memory chips is expected to pressure Nvidia’s gross margins, which have been among the highest in the technology industry. The company nevertheless expects strong demand to continue as businesses and cloud providers expand their AI computing capacity. (Financial Times)

Chief executive Jensen Huang has argued that AI adoption is spreading well beyond a small number of frontier AI companies. Cloud providers, enterprises and a growing number of smaller technology companies are investing in infrastructure to run AI applications.

That broader adoption could help Nvidia maintain rapid growth even as competition increases from companies developing their own AI accelerators.

A crucial test for the AI boom

Nvidia’s forecast provides fresh evidence for investors who believe the AI infrastructure boom is still in its early stages. The company’s expected 70% growth rate would represent another extraordinary year for a business that has already expanded at an unprecedented pace.

However, the financing debate highlights a key question for the broader AI industry: how much of today’s enormous investment will eventually translate into sustainable economic returns?

If AI applications generate enough revenue and productivity gains to justify the infrastructure spending, Nvidia’s strategy could prove highly successful. But if customers struggle to earn sufficient returns from their AI investments, concerns about financing structures and capital intensity could become more significant.

For now, Nvidia remains confident. Its latest forecast suggests that, despite rising costs, supply constraints and concerns about the sustainability of AI spending, the world’s largest AI-chip maker expects the demand cycle to remain exceptionally strong.

Reference: Financial Times, “Nvidia projects 70% sales growth next year as it rebuts ‘circular financing’ criticism” (August 2026). Financial Times article