VC10X Pulse - Nvidia Earnings: $5T Growing at 100%+ YoY - Date: 27 Aug '26

nvidia is now roughly a 5 trillion dollar company at that size you'd expect growth to slow down dramatically instead yesterday nvidia reported 96.2 billion dollars of quarterly revenue that's 106 percent higher than a year ago data center revenue was even more extraordinary 89 billion dollars up 117 percent year on year and nvidia is guiding to another 108 billion dollar next quarter but here's the number i find even more interesting management is signaling approximately 70 revenue growth for fiscal 2028 so the question isn't whether nvidia had another great quarter it surely did the real question is how does a company this large continue growing at rates normally associated with startups Let's first talk numbers. Nvidia generated $46.7 billion of revenue in the same quarter last year. Now it's doing $96.2 billion. That's more than doubling revenue in 12 months. And this isn't low-quality growth. Nvidia generated $59.7 billion of GAAP net income in the quarter. That's a 126% increase year over year. Gross margin was 75%. So we're talking about a company generating almost $60 billion of quarterly profit while still growing revenue at more than 100%. That's the extraordinary part of this story. And the data center story is real. Almost all of the growth is coming from one place, data center. Revenue reached $89 billion, up 117% year on year and 18% sequentially. Think about what that means. One year ago, Nvidia's entire quarterly revenue was about $47 billion. Today, its data center business alone is generating nearly twice that. This isn't simply companies buying GPUs. It's an infrastructure build-out, AI training, inference, agents, reasoning models, physical AI, and increasingly AI factories being built around the world. But here's where it gets really interesting. Nvidia's previous quarter generated $81.6 billion. The company guided to $91 billion. It actually delivered $96.2 billion. And now it's guiding to $108 billion for the next quarter. That's roughly 89% year-on-year growth even at the next quarter guidance. And management isn't stopping here. According to reporting from the earnings call, Nvidia expects approximately 70% revenue growth in fiscal 2028, well above the roughly 44% growth analysts had previously modeled. That's the number investors really need to think about. If Nvidia actually grows revenue 70% in fiscal 2028, we are potentially talking about something approaching $700 billion of annual revenue. And this is where the 5 trillion valuation becomes important. Because at this scale, you don't need to believe Nvidia will grow at 100% forever. You need to believe it can maintain extraordinarily high growth for long enough to justify today's expectations. That's a very different investment question. now the important question how can nvidia still grow this quickly i think there are three major reasons first ai demand is expanding beyond hyperscalers a year ago much of the ai build out was being driven by relatively small number of enormous companies Now, NVIDIA says demand is broadening across AI labs, startups, enterprises, sovereign buyers, and industrial applications. That's important. The customer base is expanding.