Nvidia jumps 6% in premarket trading after blockbuster earnings boost AI confidence
· Technology · CNBC, Economic Times
Nvidia shares rose nearly 6% in premarket trading following earnings that surpassed Wall Street estimates. CFO Colette Kress stated that the company expects revenue growth of 70% for fiscal 2028, which runs from February 2027 to January 2028. CEO Jensen Huang noted that AI demand significantly exceeds that 70% projection, though the company faces ongoing supply chain constraints from main manufacturer TSMC and memory chip shortages. The tech giant also reported strong diversification in its customer base, with AI Clouds, industrial, and enterprise ACIE customers generating $40.3 billion in sales, up 138% annually. Meanwhile, analysts pointed to potential future threats from custom semiconductors recently developed by hyperscalers and AI labs like OpenAI.
Why it matters
The strong earnings and revenue forecast alleviate investor concerns regarding capital expenditure returns in the tech sector, directly impacting global semiconductor markets and AI-focused infrastructure investments.
Read the original report — CNBC
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