Nvidia’s stock climbed nearly 9% following the company’s earnings announcement and forward guidance, increasing the chipmaker’s market value by roughly $440 billion. The gain marked a departure from historical patterns, as Nvidia’s shares had declined on the day after reporting results in each of the previous four quarters despite meeting or exceeding expectations.
The company’s chief financial officer indicated that Nvidia anticipates revenue growth of 70% for fiscal 2028, which spans February 2027 to January 2028. Chief Executive Officer Jensen Huang stated that actual demand significantly exceeds this projection but that manufacturing constraints limit the company’s ability to fulfill orders. Taiwan Semiconductor Manufacturing Co., Nvidia’s primary manufacturing partner, continues operating under supply limitations, while availability of memory chips remains restricted. Huang noted that Nvidia had expanded its supply chain visibility, allowing it to forecast further in advance than previously possible.
Analysts highlighted potential competitive threats from custom semiconductors being developed by major technology companies and artificial intelligence research organizations. Huang characterized the artificial intelligence market as having reached an inflection point, observing that the number of companies requiring substantial graphics processing unit capacity has grown considerably. The executive noted that the market has evolved from being driven by individual research labs to encompassing multiple frontier laboratories, a vibrant open-source ecosystem, and emerging physical AI applications.
Nvidia reported that its artificial intelligence, clouds, industrial and enterprise customer segment generated $40.3 billion in sales during the quarter, representing a 138% increase year-over-year and demonstrating customer diversification beyond major hyperscalers. The company also announced plans to acquire Hugging Face, an open-source platform for sharing artificial intelligence models, for $12.9 billion, potentially expanding its presence in the software and model development sector. Other semiconductor stocks, including Broadcom and Intel, also gained following Nvidia’s results.
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