Nvidia shares climbed sharply in premarket trading Thursday, extending gains after the chipmaker’s latest earnings report and upbeat guidance reassured investors that demand for AI infrastructure remains robust. Shares were last up 5.95% in premarket action, according to CNBC.
The move came after Nvidia projected revenue growth of 70% for fiscal 2028, the period running from February 2027 to January 2028. CFO Colette Kress delivered that outlook on Wednesday, and CEO Jensen Huang went further, saying demand “is much greater than 70%,” but that the company is constrained by how much product it can supply.
Huang said Nvidia has “never forecasted” a year in advance, but that the company now has “a lot greater visibility now” across its supply chain, allowing it to provide the multiyear outlook.
Supply constraints and competitive threats
Those constraints stem largely from Nvidia’s manufacturing partners. TSMC, Nvidia’s primary manufacturer, continues to face supply limitations, and memory chips — a key component of Nvidia’s systems — also remain in short supply, according to the company.
At the same time, analysts on Thursday flagged a potential “threat” to Nvidia’s near-monopoly on the most advanced AI chips: custom semiconductors recently introduced by hyperscalers and AI labs like OpenAI. Those bespoke chips could, over time, chip away at Nvidia’s dominance in the data center GPU market.
AI demand ‘inflection point’
Huang said AI has “reached its inflection point,” noting that the number of companies needing large clusters of GPUs has expanded dramatically.
“This time last year, one lab alone was driving the buildout,” Huang said. “Today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world.”
Nvidia also emphasized that its customer base is diversifying beyond the largest cloud providers. Sales to AI Clouds, industrial, and enterprise (ACIE) customers reached $40.3 billion in the quarter, up 138% year over year.
Investor sentiment rebounds
The forecast arrives at a time of lingering investor anxiety over capital expenditure from big tech companies, the circular nature of AI-related financing deals, and the overall return on AI investments. Nvidia’s commentary appeared to calm some of those fears.
“The earnings results tell you that the valuation today is cheap,” Siddy Jobe, senior portfolio manager of the Exponential Technologies Fund at Econopolis Wealth Management, told CNBC’s “Squawk Box Europe” on Thursday. “There is plenty, plenty of upside in the Nvidia share.”
Confidence also seemed to be returning after chip stocks shed $1 trillion in July before recovering. “I continue to be very bullish on Nvidia and this entire ecosystem,” Paul Meeks, head of technology research at Freedom Capital Markets, told CNBC’s “Squawk Box Asia” on Thursday. “I don’t think we have really a threat of a slowdown until we get into 2028 earliest.”
Source: www.cnbc.com — https://www.cnbc.com/2026/08/27/nvidia-nvda-q2-earnings.html
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