Nvidia delivered another powerful signal that the artificial intelligence boom is far from over.
Shares of the AI chip giant jumped nearly 7% Thursday after Nvidia reported stronger-than-expected quarterly results and issued an aggressive long-term growth outlook. The rally helped lift semiconductor and technology stocks as investors regained confidence in the massive spending cycle surrounding artificial intelligence.
Nvidia Reports $96.2 Billion in Quarterly Revenue
Nvidia reported $96.2 billion in second-quarter fiscal 2027 revenue, representing an extraordinary 106% increase from the same period a year earlier and an 18% increase from the previous quarter.
The company's Data Center division — the heart of Nvidia's AI business — generated $89 billion, up 117% year over year.
Those numbers demonstrate the scale of investment flowing into AI infrastructure as technology companies, startups and governments continue building increasingly powerful data centers.
Nvidia Projects Massive Growth Ahead
Perhaps even more important than Nvidia's latest earnings was what the company said about the future.
Nvidia is projecting roughly 70% revenue growth for the fiscal year ending January 2028, according to Reuters. That forecast helped ease concerns on Wall Street that spending on AI infrastructure could soon begin slowing.
Nvidia is also forecasting approximately $108 billion in revenue for its next quarter, plus or minus 2%.
CEO Jensen Huang described artificial intelligence as having reached an important inflection point, with AI systems increasingly performing productive work across industries.
Nvidia's AI Business Is Getting Bigger
The company's next-generation Vera Rubin computing platform is already ramping into production, with infrastructure running at partners including Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, CoreWeave and Nebius.
Nvidia is simultaneously helping facilitate an enormous expansion of AI infrastructure.
Earlier this month, the company announced partnerships involving Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR designed to mobilize more than $500 billion in third-party capital for AI infrastructure development over time.
Wall Street Reacts
Investors responded quickly.
Nvidia shares climbed about 6.8%, a move Reuters estimated could add approximately $296 billion to the company's market capitalization. At least 16 brokerages raised their Nvidia price targets following the results.
The enthusiasm spread beyond Nvidia.
Intel, Micron, Broadcom and SK Hynix were among the semiconductor companies benefiting from renewed optimism around AI spending, while the Nasdaq also moved higher.
The AI Boom May Still Be in Its Early Stages
For months, investors have questioned whether the hundreds of billions of dollars pouring into AI chips and data centers could eventually become unsustainable.
Nvidia's latest numbers suggest demand remains extremely strong.
With quarterly revenue now approaching $100 billion, Data Center sales more than doubling year over year and Nvidia forecasting another major expansion in revenue, the company remains at the center of one of the largest technology infrastructure buildouts in history.
The bigger story isn't simply that Nvidia had another strong quarter.
It's that the companies building the AI economy apparently aren't finished spending.
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