Nvidia’s stock rose following the release of its earnings results and forward guidance, with shares gaining nearly 9% on Thursday. The increase in share price contributed approximately $440 billion to the chip manufacturer’s total market capitalization.
The company’s Chief Financial Officer indicated that Nvidia expects revenue growth of 70% for fiscal 2028, which runs from February 2027 to January 2028. Chief Executive Officer Jensen Huang stated that actual demand exceeds this forecast level, though the company faces constraints in manufacturing capacity. Huang noted that the firm has “a lot greater visibility now” across its supply chain, allowing it to make such long-term projections despite previously avoiding year-ahead forecasts.
The outlook appeared to reassure market participants who have expressed concerns about large technology companies’ capital spending plans and the eventual returns from artificial intelligence investments. Huang characterized the technology as having “reached its inflection point,” highlighting an expansion in the number of organizations requiring large computing clusters. He noted a significant shift from the previous year, when a single laboratory was driving much of the demand, to a current environment featuring multiple frontier laboratories, emerging startups, and diverse ecosystem participants.
Nvidia reported that its artificial intelligence clouds, industrial and enterprise customers segment generated $40.3 billion in sales during the quarter, representing a 138% increase on an annual basis, indicating revenue diversification beyond major technology companies. The company also announced plans to acquire open-source platform Hugging Face for $12.9 billion, potentially expanding its presence in software and model development.
Other semiconductor manufacturers, including Broadcom and Intel, also experienced gains following Nvidia’s announcement. However, analysts identified potential competitive threats from custom semiconductors being developed by major technology companies and artificial intelligence research organizations. Supply chain constraints from Taiwan Semiconductor Manufacturing Company and shortages of memory chip components continue to limit production capacity.
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