Nvidia’s strong quarterly results and upbeat forecast sent technology stocks, Bitcoin and AI infrastructure plays higher on Thursday.
Nvidia shares jumped around 8% in premarket trading after the chipmaker beat Wall Street’s expectations and issued a better-than-anticipated revenue outlook, strengthening sentiment across both the technology and crypto markets.
The Invesco QQQ advanced more than 1%, while Bitcoin gained over 1% in 24 hours, moving closer to $80,000. AI infrastructure companies also benefited, with IREN rising about 5% and TeraWulf and Cipher Mining each climbing roughly 3%.
Nvidia reported $96.2 billion in fiscal second-quarter revenue, surpassing the $92.27 billion analyst consensus. Adjusted earnings per share reached $2.22, compared with the $2.09 estimate.
The company forecast $108 billion in fiscal third-quarter revenue, exceeding Wall Street’s $103.9 billion projection.
Nvidia expects revenue to grow roughly 70% during fiscal 2028, even as customer projections indicate demand could potentially double. The company warned that supply constraints are likely to remain the primary barrier to meeting demand through the end of that fiscal year.
CEO Jensen Huang said AI agents can consume between 15 and 100 times more computing resources than conventional interactions initiated by human prompts.
Profit margins could face pressure, however. Nvidia expects gross margins to reach a low of around 71% to 72% in the fourth quarter, partly due to higher memory costs. Its current outlook also does not include revenue from China’s data-center computing market because of continuing geopolitical uncertainty.
Meanwhile, The Information reported that Nvidia has agreed to acquire Hugging Face for $12.9 billion.
The purchase would give Nvidia access to one of the leading platforms for distributing and deploying open-source AI models. It would also push the company further beyond its traditional chip and infrastructure businesses and deeper into the AI software ecosystem.
