Nvidia's Revenue Doubled - Demand for AI Remains Strong

Nvidia posted more than double revenue growth for the quarter, driven by surging demand for AI-related technologies. The company's shares rose more than 6% in premarket trading on Thursday.

Nvidia issued a revenue forecast for the current quarter that significantly exceeds Wall Street's expectations. Even more notable is the company's outlook for fiscal 2028: management estimates that revenue growth could reach approximately 70%, compared to Wall Street's forecast of just 44%.

Nvidia CEO Jensen Huang said that demand for AI chips far exceeds the company's supply capabilities, though existing production capacity allows Nvidia to confidently deliver growth of around 70%. The company will also continue working to expand its supply chain.

Gene Munster, managing partner at Deepwater Management, noted that Nvidia's forecast shows that enterprise demand for AI technologies remains strong. In his assessment, the company's 2028 results could turn out to be even stronger than the market's current expectations.

Nvidia's strong report comes at a significant moment. AI sector stocks saw robust growth in April, May and June, helping markets return to record levels despite tensions in the Middle East.

However, in July investors began to question how quickly tech giants would be able to recoup the billions of dollars invested in AI infrastructure. As a result, the Philadelphia Semiconductor Index fell more than 20% in July.

Nvidia's new forecast significantly eases these doubts, indicating that demand for AI infrastructure remains strong enough for the sector's rapid growth to continue.