Where Could NVIDIA’s Next Growth Come From?

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NVIDIA (NVDA) reported revenue of $96.2 billion in fiscal Q2 2027, up 105.9% from a year earlier. Management expects revenue to grow about 70% in fiscal 2028, and said supply constraints limit that forecast. During the August 26, 2026 call detailing these projections, management said NVIDIA had just begun shipping a new generation of data center hardware. What is that hardware, and are customers buying it yet?

NVIDIA Already Has Orders For Vera Rubin

The new hardware is Vera Rubin, and customers placed orders before the first units left. Management said production shipments began in August 2026. By then, NVIDIA already had purchase orders from every major AI cloud and system maker, along with every major hyperscaler, as the largest cloud companies are known. Management expects Vera Rubin to be the fastest product ramp in NVIDIA’s history, which is a forecast, not a result.

Vera Rubin operates as a whole system rather than a single chip. The architecture spans the Vera CPU, the Rubin GPU, networking equipment and the Groq LPU. For every gigawatt of AI data center capacity built with Vera Rubin, management puts NVIDIA’s revenue opportunity at $40 billion. That compares with $25 billion for Blackwell, the generation before it.

Management also named one large buyer. AWS is deploying an additional 2 million NVIDIA GPUs from fiscal Q3 2027 through fiscal Q2 2029, alongside Vera CPUs, some of them integrated with Rubin.

How Much Of NVIDIA’s Business Could Vera Rubin Become?

Management said Vera Rubin is expected to make up about 20% of NVIDIA’s data center revenue in fiscal Q3 2027, its first quarter of shipments. That represents a fifth of the business driving most of NVIDIA’s sales. Data center revenue reached $89 billion in fiscal Q2 2027, up 18% from the previous quarter. For fiscal Q3 2027 as a whole, management expects total sales of $108 billion, plus or minus 2%. NVIDIA’s next earnings report is due on November 17, 2026.

Vera Rubin is not a side product at a large company. It serves as the next version of the hardware NVIDIA already sells most of, and NVIDIA’s Compute & Networking segment made up 89.6% of company revenue in fiscal 2026.

The share price has not kept pace with the sales. NVIDIA stock ended November 3, 2026, trading 13.6% below its highest close of the past year, set on October 6. Over the year to November 3, the stock returned 2.3%, compared with 11.9% for the S&P 500. At 25.9 times trailing earnings, against 22.8 for the S&P 500, the stock trades at only a small premium to the market, which suggests investors expect NVIDIA’s growth to slow well below the 83.4% revenue growth of the past twelve months.

What Could Slow NVIDIA’s Vera Rubin Ramp?

Supply could. Management expects supply to remain a bottleneck at least through the end of fiscal 2028, meaning NVIDIA’s sales are limited by what it can get made, not by orders alone.

Costs are rising too. Memory prices have climbed more than management expected, and management now sees gross margin bottoming at 71% to 72% in fiscal Q4 2027. Management expects margins to settle at 72% to 73% in fiscal 2028, once price increases it has already put through take effect.

Then there is the question of who pays for the hardware. NVIDIA has invested nearly $50 billion in frontier AI labs, and plans to back some of their purchases with its own balance sheet. Management expects demand from those labs to make up roughly a quarter of its business in fiscal 2028, and said on the call that some will call this circular financing.

Vera Rubin’s share of data center revenue, measured against management’s guide, is the number to watch in NVIDIA’s next earnings report.

Does This Mean You Should Act On NVDA?

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