Topline
Nvidia’s stock price soared in premarket trading early on Thursday, reversing a more than week-long slump, and triggered an upswing in other chip stocks after the company’s forecast of a 70% jump in revenue next fiscal year appeared to tamp down on market anxiety about a potential slowdown in demand for AI compute.
Nvidia CEO Jensen Huang signaled that the company’s projections for 70% revenue growth next year is conservative due to supply constraints.
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Key Facts
In premarket trading early on Thursday, Nvidia’s stock price rose to $224.83 per share, up more than 7.2% from Wednesday’s close.
The post-earnings boost wiped out a slump that began last week amid anxiety over its earnings and criticism of its apparent “circular financing” deal with top AI companies like OpenAI and Anthropic.
Optimism about continued AI-fueled growth boosted other top chip companies as well, with Intel’s stock rising 3.55% to $91.27, Broadcom climbing 1.8% to $362.12, while AMD’s shares rose 1.6% to $488.72 in the premarket.
Memory chipmaker Micron’s shares rose more than 4% to $976.71 as Nvidia’s earnings call acknowledged a scarcity of memory chips due to high demand from AI chipmakers.
The chip stock surge boosted the tech-heavy Nasdaq Futures index, which rose 1.10% to 29,622.25 points, while the benchmark S&P 500 futures climbed around 0.5% to 7,727.00 points.
Key Asian semiconductor stocks also saw a boost, with SK Hynix, Samsung and Kioxia shares rising 2.5%, 1.7% and 5% respectively.
What Do We Know About Nvidia’s Q2 Earnings?
Nvidia reported its earnings for the second quarter of 2026 on Wednesday. The company reported $96.2 billion in revenue for the second quarter, up 106% from the previous year, beating Wall Street’s forecasts of $92.2 billion. Net income rose to $59.7 billion from $26.4 billion last year, and the company projected $108 billion in revenue for the current quarter—again beating analyst expectations of around $104.2 billion.
What Did The Chipmaker Say In Its Earnings Call?
In its earnings call, the company said it expects a 70% jump in sales in the next fiscal year. The company’s billionaire CEO, Jensen Huang, suggested that the 70% projection was conservative and largely due to supply chain constraints. He said: “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%. We are going to continue to work with our supply chain to increase on that.”
further reading
Nvidia Posts $96 Billion Quarter As AI Boom Powers 106% Growth In A Year (Forbes)