‘How the Heck’ Can Nvidia Grow Revenue 70% From Here? Jensen Huang Tells Jim Cramer ‘It’s Not Easy’

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Analysts largely see the results as evidence that AI demand remains strong, though some flagged valuation and profitability risks.Rising memory costs are set to pressure margins before Nvidia’s planned price increases take effect.Retail traders turned ‘extremely bullish’, with Nvidia emerging as the top trending ticker on Stocktwits.Nvidia Corp. CEO Jensen Huang is the man of the hour. The AI chipmaker delivered another record quarter and forecast sales growth of 70% next year, building on an already massive base. The report sent Nvidia shares surging in after-hours trading, with Huang later discussing on CNBC what is driving the company’s rapid growth and how he sees the AI market evolving.CNBC’s “Mad Money” host Jim Cramer said the annual revenue projection was “frankly blowout” and asked, “What gives you that confidence and how the heck could you do it?” Huang replied, “Well, it’s not easy, but let’s say, first of all, demand is super strong and, incredibly, it’s accelerating.”He said rising AI adoption, more complex models, and a growing customer base are driving demand for tokens, with compute now the key constraint. The growth is broad-based across hyperscalers, neoclouds, sovereign clouds and enterprises worldwide, while Nvidia’s upcoming Vera Rubin platform is expected to be the company’s fastest-ramping product yet, he said.For its fiscal 2027 second quarter, the company reported $96.2 billion in quarterly revenue, while data center revenue climbed 117% to $89 billion. Analyst View On NvidiaThe reaction to Nvidia’s blowout quarter was overwhelmingly bullish, with analysts pointing to the company’s ability to sustain exceptional growth even from an already massive base.Nicholas Mugalli, chief analyst at World Trade Securities, said Nvidia’s result “completely incinerates the near-term bear thesis.” “At a freaking $5.5T valuation. The rule of 40 literally does not exist at this level of growth,” Mugalli wrote in an X post, arguing that Nvidia’s growth is so far above normal large-cap benchmarks that traditional valuation frameworks struggle to apply.Gene Munster, managing partner at Deepwater Asset Management, said that the company’s forecast for about 70% revenue growth in fiscal 2028 was far above Wall Street’s expectations of roughly 44%. However, Munster also flagged the initial pressure on Nvidia shares from its margin outlook, as rising memory costs are expected to weigh on profitability.Daniel Newman, CEO of The Futurum Group, said the long-term growth outlook should “massively deflate bearish sentiment around slowing growth,” adding that Nvidia remains a key gauge for the durability of the AI infrastructure buildout.EZ Primary Research CEO and AI critic Ed Zitron, however, offered a counterpoint, questioning whether the broader AI ecosystem is generating enough profits to justify the enormous infrastructure spending. “Are the profitable to generate tokens in the room with us Jensen?” he wrote, highlighting the debate over whether Nvidia’s record demand ultimately translates into sustainable returns for its customers.Surging Memory Prices Pressure Nvidia ProfitsNvidia issued a direct margin reset due to severe price spikes in high-bandwidth memory. Gross margins, which were 75% in the second quarter, are projected to drop to 74% in Q3, bottom out at 71–72% in Q4 FY27, and settle at 72–73% in FY28 after Nvidia’s price increases take effect in Q1.Because memory supply is severely constrained by the global AI build-out, component prices have risen higher than previously budgeted, forcing Nvidia to revise the near-term outlook."Many of you have expressed concerns regarding our gross margins as component costs have risen significantly. As you are already aware, we are experiencing extreme pricing conditions in memory... As a result, we are resetting expectations today," Nvidia Colette Kress said in the post-results analyst call."We expect margins to bottom in Q4 in the 71% to 72% range before settling at 72% to 73% in fiscal year '28, as executed price increases take effect in Q1," Kress said.Nvidia said it continues to make strategic commitments across supply, infrastructure, and partner ecosystems. “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%,” Huang said in the earnings call.Retail View On NVDANVDA was the top trending ticker on Stocktwits early Thursday, with its retail sentiment climbing to ‘extremely bullish’ from ‘bullish’ the previous day.“$NVDA saved the entire market. What an absolute beast! We're witnessing history here,” a trader said, referring to how the report lifted memory and neocloud stocks and fanned a positive view across AI-linked names. NVDA stock rose about 5% in overnight trading following the results. Shares have gained 12% so far this year.For updates and corrections, email newsroom[at]stocktwits[dot]com.Read Next: MU, SNDK, SKHY: Memory Stocks Surge Overnight After Nvidia More Than Doubles Purchases

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