Nvidia shares rose on Thursday after the chip giant’s revenue guidance reassured investors that AI demand will remain strong.
Shares were last up 5.95% in premarket trading
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.