Nvidia Stock Surges After Blockbuster
Nvidia's stock rose 8.7% after earnings, driven by strong revenue and a forecast of over 70% growth for fiscal year 2028, with analysts citing potential
Nvidia’s stock rose 8.7% on Thursday, its largest post-earnings gain since May 2024, closing with a market cap of $5.49 trillion after gaining $441.5 billion.
The company’s revenue and next-quarter forecast exceeded Wall Street expectations, with an early projection of more than 70% revenue growth for the fiscal year ending January 2028. TD Cowen analyst Joshua Buchalter called this preview a “potential catalyst for the stock,” noting the forecast factored in supply constraints that could have limited higher growth.
The FactSet consensus implied about 45% growth for the year, while analysts expect $403.5 billion in revenue for the current fiscal year. Goldman Sachs analyst James Schneider believes Nvidia could surpass its fiscal 2028 forecast if data center partnerships continue to close the demand-supply gap. Raymond James analyst Simon Leopold stated it “seems possible” for Nvidia to generate $1 trillion in revenue for the fiscal year ending January 2029, above the FactSet consensus of less than $750 billion.
Nvidia projects profit margins of 72% to 73% for the next fiscal year, down from recent levels but expected to ease concerns about margin compression. Analysts say rising memory-chip prices and competition from custom chip programs make the guidance range “better than worst-case scenarios.”
Buchalter of TD Cowen said Nvidia’s confidence in financing its ecosystem partners signals “visibility” as its Vera Rubin chip platform begins shipments. He added that Nvidia’s balance sheet is becoming “as much of a moat as their technology,” with equity stakes and revenue-sharing agreements securing hundreds of billions in customer commitments.
Bernstein analyst Stacy Rasgon noted that demand is accelerating amid the Rubin platform, described as “the largest impending product cycle” in Nvidia’s history, following the Blackwell generation. He also highlighted that Nvidia’s financial strength reinforces its market position beyond technology.
While some analysts warn of risks from high spending and competition, others see the combination of strong earnings, robust guidance, and AI infrastructure leadership as justification for the stock’s surge and potential for further gains.
Nvidia’s market cap gain of $441.5 billion on Thursday ranked as the second-largest one-day market-cap increase in history, according to Dow Jones Market Data.
