Nvidia rises after signaling longer AI spending runway
The world's most valuable company projected 70% revenue growth next fiscal year and forecast current-quarter sales above Wall Street estimates, signaling that the AI spending boom remains intact.
- ✓The world's most valuable company projected 70% revenue growth next fiscal year and forecast current-quarter sales above Wall Street estimates, signaling that the AI spending boom remains intact.
- ✓Shares rose 6.7% to $223.71 before the bell, putting Nvidia on track to add about $340 billion to its market value.
- ✓Nvidia's shares have fallen nearly 12% from their May peak amid growing investor demands for evidence that the AI spending boom would endure.
- ✓Following the results, at least 10 brokerages raised their price target on the shares, according to data compiled by LSEG.
(Catch all the Technology News News, and Latest News Updates on The Economic Times.)
SynopsisThe world's most valuable company projected 70% revenue growth next fiscal year and forecast current-quarter sales above Wall Street estimates, signaling that the AI spending boom remains intact.
Shares rose 6.7% to $223.71 before the bell, putting Nvidia on track to add about $340 billion to its market value.
The world's most valuable company projected 70% revenue growth next fiscal year and forecast current-quarter sales above Wall Street estimates, signaling that the AI spending boom remains intact.
The upbeat outlook rippled through global semiconductor markets, sending AI-linked stocks higher in Europe and China and offering fresh ammunition to bulls.
Nvidia's shares have fallen nearly 12% from their May peak amid growing investor demands for evidence that the AI spending boom would endure.
Following the results, at least 10 brokerages raised their price target on the shares, according to data compiled by LSEG.
Analysts at Morgan Stanley said, "70% growth supply constrained is a remarkable figure, and to the extent possible we would expect Nvidia to continue to knock down barriers to higher growth."
The forecast marked a rare long-term outlook from Nvidia, with CEO Jensen Huang saying AI had reached an "inflection point" as the technology moves from experimentation to real-world deployment.
Nvidia signaled that AI demand is spreading beyond hyperscalers, citing growth from AI labs, rising capacity among neo-cloud providers such as CoreWeave and Nebius, and a deeper partnership with Amazon Web Services.
Shares of CoreWeave and Nebius rose 5.8% and 7.2%, respectively.
Morgan Stanley analysts said that Nvidia's push into cloud revenue-sharing could become a fresh catalyst for the stock.
The company reported second-quarter revenue of $96.2 billion, ahead of Wall Street expectations, driven by $89 billion in data center sales.
The stock trades at 17.9 times forward earnings estimates, well below Advanced Micro Devices' 37.2 times and Intel's 46.2 times.
Read more news onNvidia AI spendingNvidia stock riseAI infrastructure growthNvidia market valueNvidia revenue forecastinvestment in AI technologysemiconductor market
(Catch all the Technology News News, and Latest News Updates on The Economic Times.)
Elevate your knowledge and leadership skills at a cost cheaper than your daily tea.
As IndiGo, Air India scramble for pilots, fresh headwinds hit hardWhen a CFO resigns, is ‘personal reasons’ explanation enough?FCNR (B) scheme garners USD65 bn, but why isn't the rupee gaining?ET Prime special: Bigger, Better or Both? Understanding business to figure out the mystery: Power Grid Corp – Part 1US bond yield: Will it become a new pain point?Bigger or Better: BEL’s biggest shareholder is also its biggest customer – and its rule-maker. Final partTrain station to rocket propellants, a Nagpur firm’s INR21k-cr journeyThe Nifty doesn't predict India. It records itET Prime special series: Bigger or Better? Bharat Electronics’ 2013 to 2026 journey – Part 2ET Prime special series: Bigger or Better? Bharat Electronics’ 2013 to 2026 journey – Part 1
- •Aspirants and citizens are advised to monitor official notices and circulars issued by ET Tech & Digital India.
- •Verify all prescribed eligibility criteria, cutoff dates, and authenticated document requirements prior to formal submissions.
- •Track connected examination timetables, vacancy advisories, and administrative gazettes on SuchnaSetu.
| Issuing Authority | ET Tech & Digital India |
|---|---|
| Topic Category | TECHNOLOGY |
| Jurisdiction | All India / National |
| Publication Date | 27 August 2026 |