Nvidia Partners With Lenders to Fuel AI Chip Demand

Nvidia is trading at record highs as the AI industry shifts from model training toward business and consumer applications. The company expects revenue growth of approximately 70% in fiscal 2028, though management indicates growth could approach 100% if current supply constraints are eliminated.

To facilitate the expansion of customer data centers, the company has partnered with lenders including Goldman Sachs, Blackstone, and Apollo to provide financing and loss guarantees. These measures aim to lower the barrier for customers to scale their infrastructure.

Despite this growth, the company faces several headwinds. Nvidia lowered its gross margin outlook for fiscal 2028 to 72%-73%, citing rising memory prices and potential delays in the ramp-up of its Rubin chip. The company also faces increasing competition from AMD and cloud providers developing proprietary chips with partners like Broadcom, while remaining exposed to the debt levels of its largest customers.