Nvidia's 70% Revenue Forecast Reignites AI Trade as Tech Stocks Surge on Unabated Demand
11 Sources
[1]
Nasdaq futures take lead after Nvidia forecast refuels AI trade
Aug 27 (Reuters) - Futures tied to the tech-heavy Nasdaq outperformed peers on Thursday after AI bellwether Nvidia's blockbuster forecast renewed investor confidence in the AI trade and boosted technology stocks globally. The chip giant (NVDA.O), opens new tab rose 7.4% in premarket trading after
[2]
Asian technology shares ride high on AI optimism after Nvidia's 'stunning' results - business live
Good morning, and welcome to our rolling coverage of the global economy, the financial markets, the eurozone and business. Asian technology shares rose after bumper results from the US chipmaker Nvidia last night. There was a sigh of relief after AI bellwether Nvidia reported a doubling in
[3]
Asian chip firms lifted by Nvidia forecast but broader markets struggle
Hong Kong (AFP) - Asian chip firms rallied Thursday following more blockbuster earnings from Nvidia that eased worries over the AI investment boom, though the euphoria was tempered by US data showing stubbornly high inflation. In a highly anticipated report, the world's most valuable company
[4]
Tech stocks lead Wall Street after strong Nvidia, Salesforce forecasts driven by AI demand
Technology stocks are leading Wall Street on Thursday after Nvidia, Salesforce and others reported even fatter profits for the spring than analysts expected. The S&P 500 added 0.7% and pulled closer to its all-time high set earlier this month. The Dow Jones Industrial Average was up 172 points, or
[5]
5 Things to Know Before the Stock Market Opens on Thursday
Aaron McDade is a breaking news reporter for Investopedia. He is an experienced journalist who has covered everything from the latest in business and tech news to sports and international news like the war in Ukraine for respected outlets like Business Insider and Newsweek. Stock futures are
[6]
Stock Market Today: Nasdaq, S&P 500 Futures Surge After Blockbuster Nvidia Earnings Report; Salesforce, CrowdStrike Also Power Tech Gains
A former Senior Publishing Editor on the Dow Jones Newswires team at The Wall Street Journal, Aaron earned a Bachelor's degree in Economics from the University of Michigan and a Master's in Journalism from Columbia University. Nasdaq 100 and S&P 500 futures jumped Thursday as AI-tied shares surged
[7]
Asia Open: Nvidia Fires Up the Chip Complex, but Jackson Hole Splits the Screen
Nvidia (NASDAQ:NVDA) extended the AI runway into 2028, but sticky inflation and Kevin Warsh are stopping the broader market from going full throttle. Nvidia Fires Up the Chip Complex Asia is not tepid this morning. It is bifurcated. Nvidia has fired a flare directly over the semiconductor
[8]
Nasdaq, S&P 500 lifted by Nvidia's forecast; investors eye speech by Fed's Warsh
NEW YORK, Aug 27 (Reuters) - The technology-heavy Nasdaq outperformed peers at close of trade on Thursday after chip-maker Nvidia's bumper revenue forecast reaffirmed the strength of the AI boom and fueled gains in technology stocks. Nvidia shares jumped after the chip company's robust forecast
[9]
Nasdaq Futures Buoyed by Nvidia Earnings, Software as Oil Turns Positive -- Update
U.S. technology futures jumped in European afternoon trade after Nvidia's bumper earnings forecast renewed optimism around artificial-intelligence stocks, while software earnings quieted investor pessimism on the sector. The world's most valuable company raised its revenue outlook, signaling
[10]
Nasdaq Futures Buoyed by Nvidia Earnings, Software as Oil Falls
U.S. technology futures jumped in early European trade after Nvidia's bumper earnings forecast renewed optimism around artificial-intelligence stocks, while software earnings quieted investor pessimism on the sector. The world's most valuable company raised its revenue outlook, signaling greater
[11]
US stock futures subdued in run-up to Nvidia results, inflation print
Aug 26 (Reuters) - U.S. stock index futures were little changed on Wednesday as investors stayed cautious ahead of AI bellwether Nvidia's earnings and a closely watched inflation report that could influence interest-rate expectations. The Personal Consumption Expenditures report, the Federal
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Nvidia reported $96bn in Q2 revenue and forecast $108bn for Q3, signaling a 70% annual jump that validates the AI infrastructure buildout. The chipmaker's results triggered rallies across tech stocks as CEO Jensen Huang declared AI has reached its "golden age," easing investor concerns about peak AI spending.
Nvidia Forecast Validates AI Infrastructure Investment
Nvidia delivered blockbuster results that sent shockwaves through global markets, reporting $96bn in second-quarter revenue—nearly double the previous year—and forecasting third-quarter revenue of $108bn
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. The forecast represents a 70% revenue jump for the next fiscal year, directly countering concerns that the AI investment boom might be peaking2
. CEO Jensen Huang declared that "AI has reached its inflection point" and announced the AI infrastructure buildout remains at "full steam," signaling sustained strong demand for AI chips4
. The world's most valuable company, with a $5 trillion market cap, demonstrated that AI demand remains supply-constrained even at this massive scale2
.
Source: Market Screener
Tech Stocks Rally on Renewed AI Optimism
The Nvidia forecast triggered widespread market optimism, with the company's shares surging 6-9% in premarket and after-hours trading
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. Nasdaq futures jumped 1.03% while the S&P 500 added 0.7%, with tech stocks leading the rally1
. Chip firms across Asia responded enthusiastically—South Korea's KOSPI closed 1.5% higher with Samsung Electronics up 3%, while SK hynix gained 2-3% and Japan's Kioxia climbed more than 4%3
. U.S. chipmakers Micron Technology gained 4.2%, Marvell Technology rose 5.2%, and Broadcom added 1.6% in premarket trading. Data storage firms Western Digital and Sandisk jumped 3.4% and 4.9% respectively, demonstrating the ripple effect across the AI infrastructure ecosystem1
.
Source: Market Screener
Salesforce and CrowdStrike Ease AI Disruption Fears
Salesforce jumped 10-20.9% after reporting one of its best quarters in history, with CEO Marc Benioff stating the company is "seeing incredible demand for our AI and data products"
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. The enterprise software maker posted $11.35bn in revenue and $5.90 adjusted earnings per share—double year-over-year—while raising full-year forecasts5
. Salesforce announced an expanded partnership with Anthropic, introducing "Claudeforce" that combines Anthropic's Claude AI models with Salesforce's established platform1
. CrowdStrike climbed 8.8-9% after CEO George Kurtz called it "the best quarter in CrowdStrike's history," reporting $1.47bn in revenue—up 26% year-over-year—and 31 cents adjusted earnings per share5
. These results calmed fears that advanced AI tools could disrupt traditional software companies, narrowing the valuation gap with semiconductors1
.Related Stories
AI-Driven Demand Remains Supply-Constrained
Charu Chanana, chief investment strategist at Saxo Markets, emphasized that "the biggest positive was management effectively telling investors that AI demand remains supply-constrained even at this scale"
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. Nvidia specifically highlighted that demand for its Blackwell chips has been particularly significant, demonstrating customers continue spending heavily on the newest generation of AI accelerators rather than simply filling existing capacity2
. During a conference call, Jensen Huang expressed confidence in the AI industry by revealing he regrets not investing more money in OpenAI and Anthropic5
. However, the company warned that shortages of memory components could curb how fast AI-driven demand expands1
.Investor Confidence Faces Long-Term Questions
While immediate market optimism surged, analysts cautioned that questions about the durability of the AI investment boom will resurface. Susannah Streeter, chief investment strategist at Wealth Club, noted that "it's becoming less about whether Nvidia can keep climbing the AI mountain, and more about how long it can sustain this extraordinary pace of ascent and whether the vast sums being poured into AI infrastructure will ultimately deliver the returns needed to justify the colossal investment"
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. Concerns persist about Nvidia and other chipmakers relying on a few large companies for much of their revenue, with CFO Colette Kress addressing financing agreements during the call, stating "some will call this circular financing. We see it differently"5
. The AI trade revival comes as investors await Federal Reserve Chair Kevin Warsh's Jackson Hole address on Friday for hints about interest rate policy, with inflation remaining at 3.7%—well above the Fed's 2% target3
. Watch for whether Nvidia's supply constraints ease and if AI-related products begin generating the promised returns that justify current valuations.
Source: France 24
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