Nvidia’s Revenue Guidance Reassured Investors. Its Stock Is Now Jumping.

Nvidia's stock shrugged off initial concerns from investors and is jumping on Thursday after reporting results that easily beat expectations.

The stock gained more than 6% in premarket trading, buoying the broader semiconductor sector. Companies like Micron, Arm and Intel also climbed.

In the conference call, company CFO Colette Kress said Nvidia expects revenue growth to stand at 70% in fiscal year 2028. CEO Jensen Huang claimed that demand is "much greater" but the company cannot currently increase production as TSMC, its main manufacturer, faces supply challenges. There is also a shortage of memory chips.

Huang said during a passage of the call that AI has "reached its inflection point" and the amount of companies needing the company's products is soaring.

"This time last year, one lab alone was driving the buildout," he 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."

Elsewhere, revenue topped $96 billion compared to $92 billion estimated by analysts, while earnings per share stood at $2.22, compared to the estimated $2.10. Data center sales also beat expectations and its guidance for the current quarter stood at $108 billion, compared to $104.2 billion expected by analysts.

The stock initially slipped after reporting the results. Chip stocks have struggled to maintain their momentum following a steep selloff in July, when concerns resurfaced over whether Big Tech companies will ultimately generate sufficient returns from the hundreds of billions of dollars they are spending on AI infrastructure.

Recent results from Microsoft, Amazon and Google helped ease some of those concerns. Strong growth in their cloud businesses showed continued demand for AI computing capacity. At the same time, investors have become increasingly sensitive to capital spending, with Google and Meta facing scrutiny over plans to continue pouring money into AI.

Nvidia also said its getting revenue from more companies, not just hyperscalers. It is also moving beyond simply selling GPUs and positioning itself deeper inside the financing and construction of the global AI infrastructure boom. Earlier this month, the company announced a partnership with BlackRock, Blackstone, KKR, Apollo Global Management, Brookfield and Goldman Sachs aimed at establishing financing platforms capable of mobilizing more than $500 billion in third-party capital for AI infrastructure.