Nvidia shares climbed nearly 9% following the release of the company’s earnings report and forward-looking guidance. The appreciation added roughly $440 billion to the chipmaker’s market capitalization, marking a significant single-day gain.
The company’s Chief Financial Officer indicated that revenue is projected to grow 70% for fiscal 2028, which encompasses the period from February 2027 through January 2028. Chief Executive Officer Jensen Huang noted that actual demand for the company’s products substantially exceeds this forecast, but production capacity constraints limit the company’s ability to meet that demand. The guidance represented the company’s first annual revenue forecast offered in advance, with Huang attributing this shift to improved visibility across the supply chain.
Supply constraints continue to affect the industry broadly. Taiwan Semiconductor Manufacturing Co., Nvidia’s primary manufacturing partner, faces ongoing capacity limitations, while memory chip supplies also remain constrained. Despite these challenges, Nvidia highlighted diversification in its customer base. The company reported that its AI Clouds, industrial and enterprise, or ACIE, segment generated $40.3 billion in sales during the quarter, representing a 138% annual increase.
Huang characterized artificial intelligence as having reached an inflection point, observing that the expansion of companies requiring large clusters of graphics processing units has accelerated significantly. He noted that multiple frontier laboratories are scaling operations in parallel alongside a developing open-model ecosystem and emerging physical AI applications. Separately, The Information reported that Nvidia has agreed to acquire Hugging Face, an open-source platform widely used for sharing and developing AI models, for $12.9 billion, which would expand the chipmaker’s presence in software and model development if the transaction closes.
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