NVIDIA NVDA gave a sweet surprise to investors Wednesday, projecting about 70% revenue growth in fiscal 2028. This is well above Wall Street’s current forecast of roughly 43% growth and about $570 billion in revenues.
If NVIDIA achieves the projected growth rate, fiscal 2028 revenues could reach roughly $690 billion to $700 billion, exceeding the Zacks Consensus Estimate of $552.90 billion (up 42.33% year over year).
CEO Jensen Huang said the company is heading into an unusually strong year, marking the first time that NVIDIA has offered such an early full-year growth indication, per a Fortune article, as quoted on Yahoo Finance.
For the upcoming quarter, NVIDIA expects revenues between $105.8 billion and $110.1 billion, above the Zacks Consensus Estimate of $102.0 billion. The upbeat outlook helped lift NVIDIA shares about 5% in after-hours trading.
Quarterly Performance Tops Estimates
NVIDIA’s latest quarter provided further evidence of robust artificial intelligence (AI) spending. Revenues soared 106% year over year to $96.2 billion, comfortably surpassing the Zacks Consensus Estimate of $91.85 billion. Adjusted earnings came in at $2.22 per share, above management expectations of $2.06-$2.09 as well as the Zacks Consensus Estimate of $2.09.
AI Compute Demand Shows No Signs of Slowing
AI demand is growing much faster as more AI companies, startups and technologies are expanding. NVIDIA said sovereign AI initiatives, neocloud providers, startups and enterprises are all contributing significantly to growth.
This is driving huge investments in AI data centers and computing infrastructure. NVIDIA’s new Vera Rubin platform is designed to meet this rapidly rising demand. NVIDIA also continues to ink deals with companies across the AI ecosystem.
The rapid adoption of agentic AI could further increase computing requirements. The global agentic AI market is estimated at $19.33 billion in 2026 and is projected to reach $205.88 billion by 2033, at a CAGR of 40.2%, per Markets and Markets.
The above data explains why NVIDIA expects demand for computing power to rise significantly. This is especially true given that the amount of compute an AI agent needs is pretty high.
NVIDIA has invested or committed about $50 billion in investments in frontier AI Labs and worked with major financial institutions to channel more than $500 billion toward AI infrastructure.
ETFs to Play
While many investors were cautious about the bubble fear in the AI space, NVIDIA’s earnings should allay some of their fears. The very earnings report, along with hyperscalers’ massive investment boom, shows that the AI boom is here to stay.
NVIDIA’s outlook suggests AI infrastructure spending is continuing to accelerate, with no clear signs of a peak yet. Sustained demand across hyperscalers, AI labs, enterprises and other parts of the AI ecosystem thus puts the below-mentioned broad-based AI ETFs in focus.
Roundhill Generative AI & Technology ETF CHAT
The Roundhill Generative AI & Technology ETF is an actively managed fund designed to provide exposure to companies involved in the investment theme of artificial intelligence, generative AI and related technologies. The fund charges 75 bps in fees.
The VistaShares Artificial Intelligence Supercycle ETF offers investors a strategic avenue to participate in the artificial intelligence Supercycle reshaping industries worldwide. The fund charges 75 bps in fees.
Global X Artificial Intelligence & Technology ETF AIQ
The underlying Indxx Artificial Intelligence & Big Data Index is designed to provide exposure to exchange-listed companies in developed markets that are positioned to benefit from the further development and implementation of AI technology, as well as to companies that provide critical technology and services for the analysis of large and complex data sets. The fund charges 68 bps in fees.
Defiance Quantum ETF QTUM
The underlying BlueStar Quantum Computing and Machine Learning Index consists of a modified equal-weighted portfolio of the stock of companies whose products or services are predominantly tied to the development of quantum computing and machine learning technology. The fund charges 40 bps in fees.
ROBO Global Robotics & Automation Index ETF ROBO
The underlying ROBO Global Robotics and Automation Index measures the performance of companies that derive a portion of revenues and profits from robotics-related or automation-related products or services. The fund charges 95 bps in fees.
Invesco AI and Next Gen Software ETF IGPT
The underlying STOXX World AC NexGen Software Development Index comprises companies with significant exposure to technologies or products that contribute to future software development through direct revenues. The fund charges 56 bps in fees.
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