Shares of Nvidia Corp. (NASDAQ:NVDA) climbed 7.41% during Thursday’s pre-market trading session, following the company’s robust revenue guidance after strong second-quarter results.

At the same time, shares of Micron Technology Inc. (NASDAQ:MU), Intel Corp. (NASDAQ:INTC), Advanced Micro Devices Inc. (NASDAQ:AMD) and Broadcom Inc. (NASDAQ:AVGO) climbed 4.44%, 2.82%, 1.73%, and 1.85%, respectively.

Nvidia’s CFO, Colette Kress, stated on Wednesday that the company projected a revenue growth of 70% for fiscal 2028, spanning from February 2027 to January 2028.

CEO Jensen Huang mentioned that the demand is “much greater than 70%,” but the company’s capacity to supply products is presently restricted. Nvidia’s key manufacturer, Taiwan Semiconductor Manufacturing Co Ltd. (NYSE:TSM), is still dealing with supply constraints, and memory chips, a vital part of Nvidia’s systems, continue to be in short supply.

Huang added that Nvidia has “never forecasted” a year in advance, but now the company has “a lot greater visibility” across the supply chain, allowing it to do so.

Nvidia Doubles Down on AI Expansion

The company’s witnessed a 106% year-over-year increase in revenue in the second quarter, reaching $96.22 billion. Huang said that the “AI infrastructure buildout is at full steam,” indicating Nvidia’s aggressive expansion in the AI sector. 

Nvidia could see its revenue surge roughly 1,730% in four years if it meets its $108 billion third quarter guidance, a growth rate The Kobeissi Letter called unmatched in modern corporate history for a company of its size.

Meanwhile, the chipmaker has also reportedly agreed to acquire Hugging Face, an open-source AI model repository, for a whopping $12.9 billion, adding to the company’s control over open-source AI models. This acquisition is one of Nvidia’s largest to date, second only to the $20 billion Groq acquisition.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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