Nvidia’s stock gained nearly 9% following the release of its earnings results and forward guidance, with the surge increasing the company’s market capitalization by roughly $440 billion. The strong performance marked a departure from historical patterns, as the chip manufacturer’s shares had declined on the day after earnings announcements in each of the four preceding quarters, despite meeting or exceeding expectations.
Chief Financial Officer Colette Kress provided revenue growth guidance of 70% for fiscal 2028, which spans February 2027 through January 2028. Chief Executive Officer Jensen Huang stated that actual demand significantly exceeds the projected growth rate but noted that manufacturing constraints limit the company’s ability to meet the full market need. The guidance appeared to reassure investors regarding the strength and sustainability of demand for artificial intelligence infrastructure, with several peer companies in the semiconductor sector also experiencing gains following Nvidia’s announcement. Broadcom and Intel rose alongside Nvidia, while shares of Nebius rallied and CoreWeave remained flat.
Nvidia continues to face supply chain limitations affecting its production capacity. Taiwan Semiconductor Manufacturing Company, which serves as the company’s primary manufacturing partner, and memory chip suppliers both reported ongoing constraints. Despite these challenges, Nvidia emphasized the diversification of its customer base beyond hyperscalers. The company’s AI Clouds, Industrial and Enterprise, or ACIE, segment generated $40.3 billion in sales during the quarter, representing a 138% increase on an annual basis.
Executives highlighted signs of expanding adoption across the artificial intelligence industry. Huang characterized artificial intelligence as having “reached its inflection point,” noting significant growth in the number of organizations deploying large graphics processing unit clusters. He pointed to the emergence of new artificial intelligence laboratories, startups, and open-model ecosystems as indicators of broad-based demand growth.
Additionally, Nvidia agreed to acquire open-source platform Hugging Face for $12.9 billion, according to reporting by The Information and Business Insider. If completed, the transaction would bring one of the sector’s most widely utilized platforms for sharing and developing open-source artificial intelligence models under Nvidia’s ownership, further extending the chipmaker’s influence in the software and model development space.
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