How Nvidia silenced the bears
Nvidia (NVDA) reported fiscal Q2 earnings with $2.22 EPS on $96.2B revenue, exceeding estimates. The company provided a rare long-term outlook, projecting 70% revenue growth for fiscal 2028, above analyst forecasts of 45%. Shares rose 8% in premarket trading. Nvidia's Data Center revenue was $89B, and Edge Computing revenue was $7.2B, both beating expectations. The company also projected fiscal Q3 revenue between $105.8B and $110.1B.
How this was made
The 30-second read
Why it matters
The guidance lifts market expectations for AI demand, prompting a short‑term rally and longer‑term positioning.
Market read
Nvidia's earnings and guidance are a primary catalyst for tech and AI‑related equities.
What to watch
Potential supply‑chain bottlenecks and macro‑economic headwinds could temper growth.
Background
Nvidia's FY2028 outlook follows a fiscal Q2 earnings beat and comes amid heightened AI hype.
Ticker impact
Nvidia reported FY2028 revenue guidance of 70% growth, beating forecasts and causing an 8% pre‑market price jump.
Expect continued buying pressure; target price may rise 5‑10% over the next weeks.
Guidance far exceeds consensus, coupled with a solid earnings beat and a sizable pre‑market rally.
Market effects
AI chip and data‑center sectors may see broader rally as Nvidia sets a higher growth baseline.
U.S. tech indices likely to benefit; global AI supply chain may see increased demand.
Nvidia's guidance influences worldwide AI investment sentiment.
Counterpoint
Some investors may view the guidance as overly optimistic given memory‑chip constraints.
Key entities
- ExecutiveJensen Huang
CEO of Nvidia, provided the guidance.
- Analyst FirmStifel
Analyst Ruben Roy highlighted the significance of the guidance.
