Nvidia Surges on Unprecedented Guidance, Fueling Broad Tech Rally

Nvidia climbed 9% in Thursday trading, adding $371.7 billion to its market capitalization and pushing its valuation to $5.4 trillion, after the company issued a long-term revenue forecast that far exceeded expectations and sent a wave of relief through technology markets.

The chipmaker’s guidance — an unprecedented 70% revenue growth projection for fiscal 2028, compared with consensus estimates of roughly 45%, as reported by ZeroHedge — was the primary catalyst. The pre-market gain of 7.4% accelerated during the session, with the stock finishing within striking distance of an all-time high, according to Investing.com.

**AI demand reassures skeptical investors**

Chief Executive Jensen Huang delivered results that “should hang in the Louvre” and “put several major negatives to rest,” Wedbush analyst Dan Ives said, as reported by Benzinga. On the company’s conference call, Huang said demand for Nvidia’s artificial-intelligence accelerators continues to expand, according to ZeroHedge.

“Investing in these companies is a once in a generation opportunity. I think the only regret that I have is that I didn’t invest more and sooner,” Huang said during the call, as reported by ZeroHedge.

The upbeat outlook provided a counterweight to growing concerns about a potential bubble in AI spending. Nvidia’s results showed that the AI cycle is primarily constrained by physical bottlenecks such as memory and power, rather than a shortage of end demand, said Amanda Lyons, head of research at Energy Group Capital, as reported by ZeroHedge.

“It effectively pushes the cyclical question further out and, crucially, gives investors permission to extend the earnings-growth runway not just for Nvidia, but across the second- and third-order beneficiaries of the AI buildout,” Lyons said.

**Broader market moves**

Nasdaq futures rose 1.1% in pre-market trading, while S&P 500 futures gained 0.5%, according to ZeroHedge. Outside of technology, most sectors traded lower except industrials and utilities, which benefited from a reboot of the AI trade, ZeroHedge reported.

Within the Magnificent Seven, Nvidia and Tesla were the only names higher in pre-market action, with Alphabet, Amazon, Apple, Meta Platforms and Microsoft all trading in the red, according to ZeroHedge. AI infrastructure stocks broadly gained: Intel rose 2% and Advanced Micro Devices climbed 1%, ZeroHedge reported.

Software companies rallied after a string of strong earnings. CrowdStrike gained 9% after raising its full-year forecast. Okta surged 17% after boosting its outlook on key metrics. Salesforce jumped 10% after raising its full-year forecast and announcing an expanded partnership with Anthropic. Nutanix climbed 5% after its quarterly results and outlook beat expectations, ZeroHedge reported.

Memory stocks were also lifted by a $31 billion venture between Kioxia Holdings Corp. and Sandisk Corp. to expand flash memory production, according to ZeroHedge.

**Retail flows and sector winners**

Retail flows remained heavily oriented toward Nvidia and the Magnificent Seven, with gold also seeing strong inflows, while the most sold stock was Moderna, ZeroHedge reported. Bond yields edged up 1-2 basis points and the dollar was flat. Commodities were mostly lower, dragged by energy and base metals, while precious metals were mixed with gold flat and silver higher, according to ZeroHedge.

**Caution and longer-term outlook**

Despite the euphoria, some analysts cautioned that AI headline fatigue is setting in. The VIX index remained below 15 and implied volatility on one-year Nvidia options appeared cheap, even as the company’s credit default swaps traded at elevated levels and competition from China builds, ZeroHedge reported.

“Given Jensen’s constant visibility this quarter, the myriad of circular deal announcements, and just the mental exhaustion from AI headlines,” this week’s main event remains that of Warsh and the Fed at Jackson Hole, according to Dave Lutz at Jonestrading, as reported by ZeroHedge.

The broader market also showed pockets of weakness. Dollar General jumped 13% after its comparable sales topped expectations and management raised guidance, while Dollar Tree fell 4% on underwhelming third-quarter guidance, according to ZeroHedge. Wendy’s plunged 14% after Reuters reported that Trian Fund Management has no plans to make a bid to take the fast-food chain private.

Nvidia’s gains propelled the Nasdaq futures higher even as the index pulled back from highs after Politico reported the White House is considering a fresh round of tariffs on chips, ZeroHedge reported. The stock is now within striking distance of its all-time high, with the AI-focused rally showing signs of broadening into semiconductors, software and memory makers.