Nvidia CEO Jensen Huang has reaffirmed a target of roughly 70% revenue growth for the upcoming 2028 fiscal year, driven by a fundamental shift in how the company sells its technology. Speaking at the Goldman Sachs Communacopia + Technology Conference on September 10, 2026, Huang described a market where demand for the company’s Blackwell architecture is “off the charts,” with production capacity effectively sold out as enterprises race to build what he terms “AI factories.”
This growth trajectory follows a period of massive expansion. In its recent financial results for the second quarter of fiscal 2027, Nvidia reported revenue of $96.2 billion, a 106% increase year-over-year. With a market valuation now hovering around $5.3 trillion, the company is attempting to sustain its momentum by moving beyond individual component sales toward integrated, high-margin systems.
The Shift from Chips to Systems
The core of Nvidia’s 70% growth thesis lies in the transition from selling GPUs to selling “full-stack” infrastructure. While individual high-end modules like the upcoming Vera Rubin platform are expected to command prices of approximately $40,000 per unit, the company’s primary revenue engine is now the integrated system. A single high-end configuration—combining 36 Grace CPUs and 72 Blackwell GPUs—is priced at approximately $8.5 million.
These units are massive engineering undertakings, comprising roughly 2 million individual parts and requiring 2.5 megawatts of power to operate. By selling these complete “factories” rather than just the silicon within them, Nvidia captures a larger share of the total data center capital expenditure. This strategy is bolstered by the company’s recent $13 billion acquisition of the AI platform Hugging Face, which deepens Nvidia’s influence over the software layer where AI models are developed and shared.
Addressing ‘Circular Financing’ and Market Skepticism
As Nvidia’s valuation has climbed, some analysts have raised concerns regarding “circular deals,” where Nvidia invests in startups that then use that capital to purchase Nvidia hardware. Huang dismissed these concerns during the conference, characterizing Nvidia’s venture investments in firms like CoreWeave and Anthropic as “fractional” compared to those companies’ total infrastructure spending. He argued that these investments are strategic ecosystem plays rather than a method of inflating revenue figures.
Management remains focused on supply constraints rather than demand limits. While some external analysts have projected a more conservative 44% growth rate, Nvidia maintains that the massive backlog for Blackwell and the transition to the Rubin architecture will support the higher 70% target. Gross margin targets also remain aggressive, with the company aiming for 72.5% even as it scales complex system manufacturing.
Future Roadmap: Vera Rubin and Cybersecurity
The next phase of Nvidia’s hardware evolution centers on the “Vera Rubin” platform. Scheduled for volume production in the second half of 2026, Rubin is designed to succeed Blackwell with higher efficiency and interconnect speeds. The platform is expected to maintain the $40,000 per-module price point, ensuring that Nvidia’s average selling prices do not erode as the technology matures.
Beyond pure compute power, Nvidia is diversifying into specialized software verticals. The company recently launched “SafeMind” in partnership with CrowdStrike, a move that identifies cybersecurity as a major secondary growth pillar. By integrating AI-driven threat detection directly into the hardware-software stack, Nvidia intends to make its infrastructure indispensable for more than just generative AI training, targeting the broader enterprise security market as a long-term revenue stabilizer.
