Nvidia Revenue Nearly Doubles on AI Demand, Lifting Tech Stocks

Nvidia shares climbed more than 7 percent in premarket trading Thursday after the company delivered a robust revenue forecast that underscored ongoing demand for artificial intelligence hardware. The chipmaker projected 70 percent revenue growth for fiscal 2028, with chief executive Jensen Huang noting that actual customer interest exceeds even that figure yet remains limited by production capacity.

Chief financial officer Colette Kress tied the outlook to persistent constraints at Taiwan Semiconductor Manufacturing Company, Nvidia's primary foundry, along with shortages in high-bandwidth memory components. Those bottlenecks have forced the company to temper expectations despite strong order books, a detail analysts said undercuts claims of an unchecked AI expansion. Several Wall Street observers pointed to emerging competition from custom chips developed by major cloud operators and labs such as OpenAI, which could erode Nvidia's dominance in advanced accelerators over time.

Other semiconductor names moved higher in sympathy. Micron Technology rose 4.5 percent, Marvell Technology gained 5.7 percent, and Advanced Micro Devices added 1.7 percent. Shares of smaller cloud infrastructure firms including Nebius and CoreWeave also advanced around 7 percent and 6 percent respectively in early trading. Broader technology futures outperformed, with the Nasdaq-100 tracking index showing relative strength after the results eased some investor concerns about peaking capital spending by large technology companies.

Huang emphasized that Nvidia now possesses greater visibility into its supply chain than in prior years, allowing the longer-term projection. Still, the company's reliance on overseas fabrication remains a structural weakness that leaves production vulnerable to geopolitical tensions and raw-material disruptions. Memory-chip scarcity, in particular, continues to throttle output even as demand from data-center builders shows no sign of abating.

Investors had grown wary in recent quarters after several technology names reported softer-than-expected spending signals. Nvidia's update countered that narrative by confirming that AI infrastructure buildouts remain supply-limited rather than demand-limited. That distinction helped lift sentiment across the sector, though some strategists cautioned against treating the results as a green light for indiscriminate buying of any company claiming artificial-intelligence exposure.

Salesforce and CrowdStrike also posted better-than-expected numbers and raised guidance, adding to the positive tone in software names. Those moves occurred alongside the Nvidia-driven rally in hardware, illustrating how downstream applications and security tools tied to large-scale computing are drawing renewed attention. Yet the underlying production limits highlighted by Nvidia suggest that scaling artificial-intelligence systems will continue to face physical constraints for the foreseeable future, regardless of bullish forecasts.