Nvidia’s stock climbed nearly 9% following the company’s earnings release and forward guidance, contributing approximately $440 billion to its market capitalization. The gains contrasted with the pattern of Nvidia shares declining in the day after earnings announcements over the previous four quarters, despite consistently meeting or exceeding expectations.
During the earnings call, CFO Colette Kress indicated the company expects revenue growth of 70% for fiscal 2028, which spans February 2027 through January 2028. CEO Jensen Huang stated that actual demand significantly exceeds this projection, though supply constraints limit the company’s ability to meet the full market opportunity. Huang noted that Nvidia has never previously provided annual forecasts but now possesses greater visibility across the supply chain to support such guidance. He characterized artificial intelligence as having reached an inflection point, pointing to expanded customer adoption beyond the single dominant player of the previous year to encompass multiple frontier laboratories, startups, and open-model initiatives.
Other semiconductor companies benefited from Nvidia’s positive outlook, with Broadcom and Intel shares also rising. Analysts noted emerging competition from custom semiconductors developed by hyperscalers and AI organizations, representing a potential challenge to Nvidia’s current dominance in advanced AI chip markets. Taiwan Semiconductor Manufacturing Co., Nvidia’s primary manufacturing partner, and memory chip suppliers continue to operate under capacity constraints.
Nvidia highlighted diversification in its customer base, reporting that AI Clouds, Industrial and Enterprise customers generated $40.3 billion in quarterly sales, representing a 138% annual increase. Industry observers cited the earnings results as evidence supporting current valuations, with commentators expressing bullishness on both Nvidia specifically and the broader semiconductor ecosystem through 2028. The company is reportedly pursuing an acquisition of open-source platform Hugging Face for $12.9 billion, pending deal completion, which would expand its presence in AI software and model distribution.
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