Nvidia jumps 7% after blockbuster earnings boost AI confidence

Nvidia shares rose on Thursday after the chip giant's revenue guidance reassured investors that AI demand will remain strong.

Shares were last up 7.2% in premarket trading. Investor bullishness suggests Nvidia could buck the trend of its stock dropping the day after reporting earnings in all of the previous four quarters, despite meeting or beating estimates.

Chip stocks rallied following Nvidia earnings. Micron rose 4.5%, Marvell 5.7%, Arm 4.7%, Intel 3% and AMD 1.7%. Shares of neocloud firms also rose, with Nebius and CoreWeave up around 7.5% and 6% in premarket trading, respectively.

Nvidia CFO Colette Kress said on Wednesday that the company expects revenue growth of 70% for fiscal 2028, which runs from February 2027 to January 2028. CEO Jensen Huang said demand "is much greater than 70%," but the company is constrained on the amount of product it can supply.

TSMC, Nvidia's main manufacturer, continues to face supply constraints, while memory chips — a key component of Nvidia's systems — also remain in short supply .

On Thursday, analysts also pointed to a "threat " to Nvidia's near monopoly over the most advanced AI chips by recently announced custom semiconductors built by hyperscalers and AI labs like OpenAI.

Huang said that Nvidia has "never forecasted" a year in advance, but that the company has "a lot greater visibility now" across the supply chain to do so.

Nvidia's forecast comes at a time when investors remain nervous about capital expenditure from large tech companies, the circular nature of financing deals , and the return from AI investments.