Nvidia Adds $440 Billion in Market Value as Strong Guidance Eases AI Demand Concerns

Shares of Nvidia jumped close to 9 percent in Thursday trading, adding approximately $440 billion to the semiconductor designer's market capitalization. The surge followed forward guidance from company leadership that reassured investors about sustained artificial intelligence demand, according to reporting from CNBC Business.

The single-day rally marked a shift for Nvidia, whose equity had fallen on the trading session following each of its prior four quarterly earnings reports, despite surpassing Wall Street expectations in those periods. The positive momentum extended across related computing stocks, driving gains for chipmakers Broadcom and Intel, as well as cloud infrastructure provider Nebius, while specialized cloud provider CoreWeave traded flat.

During the company's financial presentation, Chief Financial Officer Colette Kress outlined expectations for 70 percent revenue expansion during fiscal 2028, which spans February 2027 through January 2028. Chief Executive Officer Jensen Huang stated that underlying customer demand "is much greater than 70%," but noted that product delivery remains limited by manufacturing bottlenecks at primary foundry partner Taiwan Semiconductor Manufacturing Co., alongside persistent global shortages of high-bandwidth memory chips.

Addressing the multi-year outlook, Huang explained that while Nvidia has "never forecasted" a full year in advance previously, management now possesses "a lot greater visibility now" across its supply network. The projections arrived as investors continued to scrutinize massive capital expenditures by major technology companies, circular financing structures, and return on investment for enterprise AI deployments. The broader chip sector had previously shed $1 trillion in market value during July before recovering.

Huang emphasized that GPU cluster adoption has broadened significantly across the sector, noting that artificial intelligence has "reached its inflection point." Contrasting current deployment patterns with previous years, Huang said: "This time last year, one lab alone was driving the build-out. 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."

To demonstrate reduced reliance on hyper-scale cloud providers, Nvidia highlighted performance in its AI Clouds, industrial, and enterprise (ACIE) customer category, which generated $40.3 billion during the quarter—a 138 percent increase year-over-year. The customer diversification comes as industry analysts evaluate potential long-term competition from custom silicon projects initiated by hyperscalers and research labs such as OpenAI.

Market analysts reacted positively to the update. Siddy Jobe, senior portfolio manager for the Exponential Technologies Fund at Econopolis Wealth Management, told CNBC's "Squawk Box Europe" that Nvidia's figures "tell you that the valuation today is cheap" and that "there is plenty, plenty of upside in the Nvidia share." Paul Meeks, head of technology research at Freedom Capital Markets, told CNBC's "Squawk Box Asia" that he remains "very bullish on Nvidia and this entire ecosystem," adding, "I don't think we have really a threat of a slowdown until we get into 2028 earliest."

The financial results coincided with reports detailing Nvidia's broader software acquisition efforts. The Information reported that Nvidia agreed to acquire open-source machine learning platform Hugging Face for $12.9 billion, citing a person familiar with the matter, while Business Insider separately reported ongoing transaction discussions. An acquisition would bring one of the industry's most widely used repositories for open-source AI models and developer tooling under Nvidia's ownership.