Nvidia's latest earnings report has triggered a notable rebound in global equity markets, particularly within the technology sector. The chipmaker delivered a moderate revenue beat, with current quarter guidance coming in at $108 billion versus the $105.2 billion expected by analysts [1]. Nvidia's shares surged 4.7% in after-hours trading following a 1.59% decline during the regular session, and were last up 5.95% in premarket trading the next day [1][2]. This positive momentum lifted S&P 500 and Nasdaq futures by 0.48% and 0.83%, respectively [1].
A key driver of investor optimism was Nvidia's bullish medium-term outlook. CFO Colette Kress stated the company expects revenue growth of 70% for fiscal 2028, which runs from February 2027 to January 2028 [2]. CEO Jensen Huang added that demand is actually "much greater than 70%" but noted ongoing supply constraints due to limited capacity at TSMC, Nvidia's main manufacturer, and shortages in memory chips [2]. Huang emphasized that Nvidia now has "a lot greater visibility" across its supply chain, allowing it to forecast further ahead than ever before [2].
The upbeat sentiment extended beyond Nvidia, with Salesforce posting a slightly stronger-than-expected sales outlook and deepening its partnership with Anthropic, while CrowdStrike shares jumped nearly 10% after-hours on strong results [1]. Asian markets also responded positively, with the Kospi up 1.49%, CSI 300 up 0.50%, Shanghai Composite up 0.60%, and Nikkei up 0.18%, though the Hang Seng dipped 0.46% [1].
Nvidia's management highlighted the broadening of its customer base, reporting that AI Clouds, industrial, and enterprise (ACIE) customers contributed $40.3 billion in sales for the quarter, a 138% year-over-year increase [2]. Despite concerns about potential threats from custom semiconductors developed by hyperscalers and AI labs like OpenAI, analysts remained bullish. Siddy Jobe of Econopolis Wealth Management remarked that Nvidia's valuation "is cheap" and sees "plenty of upside" in the stock [2]. Paul Meeks of Freedom Capital Markets echoed this sentiment, stating he does not foresee a slowdown in Nvidia's growth until at least 2028 [2].
Nvidia's commentary around sustained AI demand appeared to calm investor nerves regarding capital expenditure from large tech companies and the cyclical nature of AI investments [2]. CEO Huang described the current period as a "golden age" for AI, with a dramatic expansion in the number of companies requiring large GPU clusters and strong momentum globally [2].
CONCLUSION
Nvidia's strong earnings and optimistic outlook for AI demand have reignited bullish sentiment in tech equities, driving significant gains in both U.S. and Asian markets. The company's ability to forecast robust growth despite supply constraints, coupled with positive analyst commentary, suggests continued investor confidence in Nvidia and the broader AI ecosystem.