Nvidia shares jump 7% as strong AI demand drives revenue forecast

Nvidia shares jumped 7.2% in premarket trading Thursday after the chipmaker's revenue guidance reassured investors that AI demand remains strong, potentially breaking a four-quarter streak of post-earnings stock declines. The company forecast 70% revenue growth for fiscal 2028, with CEO Jensen Huang stating demand "is much greater than 70%" but constrained by supply limitations. Chip stocks rallied broadly, with Micron up 4.5%, Marvell 5.7%, and Arm 4.7%, while Nvidia's AI Clouds, industrial, and enterprise customers drove $40.3 billion in quarterly sales, up 138% annually. Analysts noted a threat to Nvidia's dominance from custom semiconductors by hyperscalers and OpenAI, though some called the valuation "cheap" with upside ahead. Nvidia also reportedly agreed to acquire open-source platform Hugging Face for $12.9 billion, expanding its software ecosystem reach.