Nvidia shares jumped nearly 9% on Thursday after its latest earnings report beat expectations. The rise added about $440 billion to the company’s market value. Investors were encouraged by Nvidia’s strong revenue outlook and continued demand for AI chips. The rally also lifted other chip stocks, including Broadcom and Intel. AI cloud company Nebius also gained, while CoreWeave remained mostly flat.
Nvidia’s strong forecast helped calm fears about slowing AI spending. CFO Colette Kress said the company expects 70% revenue growth for fiscal 2028. CEO Jensen Huang added that demand is actually “much greater than 70%.” However, supply limits are stopping Nvidia from meeting all the demand. Taiwan Semiconductor Manufacturing Company, Nvidia’s main manufacturer, also faces production pressure. Memory chips needed for Nvidia’s AI systems remain in short supply.
Meanwhile, Nvidia faces a new challenge from companies developing their own AI chips. Major technology firms and AI labs, including OpenAI, are building custom semiconductors. These chips could reduce Nvidia’s near-monopoly in advanced AI hardware. Still, Huang believes the AI industry has reached a major turning point. He said AI has “reached its inflection point.” He also noted that many more companies now need large GPU clusters.
“Today, we have a golden age of new AI labs and startups,” Huang said.
The positive results also helped ease concerns about expensive AI investments. Some investors have questioned whether huge spending on AI will deliver enough returns. Nvidia’s growing customer base could offer more reassurance. Its AI Clouds, industrial and enterprise customers generated $40.3 billion in sales. That figure jumped 138% from the previous year. Nvidia is also reportedly seeking to expand its AI software business. The company is said to be considering a $12.9 billion acquisition of Hugging Face.
If completed, the deal could strengthen Nvidia’s position in the open-source AI ecosystem.
