Nvidia Jumps 7% on Bullish AI Revenue Forecast — SkimNews
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- Nvidia shares rose 7% Thursday after revenue guidance reassured investors that AI demand will remain strong, bucking the pattern of the stock dropping the day after earnings in each of the prior four quarters
- Nvidia CFO Colette Kress guided to 70% revenue growth for fiscal 2028 (February 2027–January 2028); CEO Jensen Huang said demand 'is much greater than 70%' but the company is constrained on how much product it can supply
- Taiwan Semiconductor Manufacturing Co., Nvidia's main manufacturer, continues to face supply constraints alongside a broader shortage of memory chips that are key components of Nvidia systems
- Nvidia's AI Clouds, industrial and enterprise (ACIE) customers generated $40.3 billion in quarterly sales, up 138% year-over-year, as the company showed a diversifying customer base beyond hyperscalers
- Analysts flagged a 'threat' to Nvidia's near monopoly on the most advanced AI chips from custom semiconductors being built by hyperscalers and AI labs including OpenAI
- Nvidia has agreed to acquire open-source AI platform Hugging Face for $12.9 billion, per The Information, extending the chipmaker's reach into the software and model ecosystem
- Chip stocks including Marvell, Arm, and Intel rallied after Nvidia's release, while AI cloud provider Nebius jumped and CoreWeave traded flat
Why it matters: The 70% fiscal 2028 growth guide and the $40.3 billion (up 138%) surge in non-hyperscaler sales directly counter the 'circular financing' fears that drove July's $1 trillion chip-stock selloff. But the simultaneous analyst warning about custom silicon from OpenAI and the $12.9 billion Hugging Face deal reveal Nvidia is racing to deepen its moat before hyperscaler-built chips erode its dominance.
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