Nvidia Forecast Lifts Nasdaq, S&P 500
KeyBanc said NVIDIA has demand for 100% growth, but supply limits and $279 billion in obligations cap fiscal 2028 revenue growth at 70%.
- Nvidia shares rose 8.74% yesterday after the company guided to 70% revenue growth, significantly exceeding the Street's 45% expectation and lifting broader tech stocks.
- Although Nvidia guided to 70% growth, actual demand reaches 100% for next year; CEO Jensen Huang confirmed the company remains supply constrained, forcing production below market appetite.
- Nvidia announced an AWS expansion of 2 million GPUs while organizing more than $500 billion of third-party capital with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR.
- KeyBanc analyst Vinh set a $330 price target based on 20 times forward earnings and stated, "There is no other merchant AI chip solution out there on the market that is a credible alternative to Nvidia right now."
- Future earnings hinge on memory pricing stabilizing at the guided 71%-72% gross margin trough, while management excludes China Data Center compute from the $108.0 billion Q3 guide and Custom silicon poses a longer-term competitive risk.
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15 Articles
Wall Street Wanted 45% Growth From Nvidia. It Guided to 70%, and the Real Number Is Higher.
Nvidia guided to 70% revenue growth and the stock jumped, but a KeyBanc analyst revealed the real demand figure is significantly higher, and understanding why the company cannot meet it changes everything about what you are actually buying.
Tulsa World
The Times and DemocratNvidia forecast lifts Nasdaq, S&P 500
NEW YORK — The technology-heavy Nasdaq outperformed peers at the close of trade Thursday after chip maker Nvidia's bumper revenue forecast reaffirmed the strength of the artificial intelligence boom and fueled gains in technology stocks.
(New York = Yonhap News) Correspondent Lim Soo-jung = The New York stock market rose across the board on the 27th (local time) due to Nvidia's strong earnings and the subsequent rally in tech stocks.
Nvidia came just short of the largest single-day jump in value ever on Wall Street on Thursday. The American chip designer's stock closed 8.7 percent higher, adding over $440 billion to its market value. This left Nvidia just below Microsoft's record, which gained approximately $450 billion in market value in a single trading day last month.
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