Nvidia Stock Jumps as Revenue Forecast Fuels Confidence

Nvidia is giving the tech sector a lift today

Shares of Nvidia Corp (NASDAQ:NVDA) are up 5.8% at $221.80, after the chip giant reported blockbuster second-quarter results and issued a strong annual revenue forecast that reinforced confidence in artificial intelligence (AI) demand. Adjusted earnings of $2.22 per share topped estimates of $2.09, while record revenue of $96.2 billion beat expectations of roughly $92.3 billion and more than doubled year over year.

Nvidia expects revenue growth of 70% for fiscal 2028, well above the 44% analysts anticipated. CEO Jensen Huang added that demand is “much greater than 70%,” though supply constraints are limiting how much product the company can deliver.

The forecast comes as investors continue to scrutinize massive AI spending and question how long the boom can last. Huang said AI has “reached its inflection point,” citing a growing number of companies that require large clusters of graphics processing units (GPUs).

Today’s pop is poised to snap a recent losing streak for Nvidia stock, which fell in eight of the nine sessions leading up to today. The pullback brought the shares back toward support at their rising 100-day moving average, after retreating from their May 14 record high of $236.54. Despite the recent weakness, the equity remains up 12.4% year to date.

It’s also worth noting that Nvidia’s Schaeffer’s Volatility Index (SVI) of 37% sits in the low 3rd percentile of its annual range, suggesting options traders are pricing in relatively low volatility expectations at the moment — a boon for options traders.