Nvidia shares rose sharply in premarket trading after the chipmaker delivered a strong long-term outlook, reinforcing investor confidence that global spending on artificial intelligence infrastructure could remain elevated for years.
The stock gained 6.7% to $223.71 before the market opened, putting Nvidia on track to add roughly $340 billion in market value.
Nvidia projected around 70% revenue growth in its next fiscal year and issued current-quarter sales guidance above Wall Street expectations. The forecast suggested that demand for AI computing capacity remains strong despite concerns about supply constraints and the sustainability of technology-sector capital spending.
The company reported second-quarter revenue of $96.2 billion, including $89 billion from its data center business, as demand for AI accelerators continued to dominate growth.
CEO Jensen Huang said artificial intelligence has reached an “inflection point” as adoption moves from experimentation toward broader real-world deployment. Nvidia also indicated that demand is expanding beyond major hyperscalers to AI laboratories, specialized cloud providers and other infrastructure operators.
The outlook prompted at least 10 brokerages to raise their price targets on Nvidia shares. AI-linked stocks also advanced across global markets, including cloud infrastructure companies CoreWeave and Nebius.
Nvidia shares had fallen nearly 12% from their May peak as investors demanded clearer evidence that the AI investment cycle could continue. The latest results have strengthened the case that infrastructure spending still has a significant runway.
