Nvidia’s latest earnings beat and stronger outlook gave a boost to technology shares, Bitcoin and companies tied to AI infrastructure.
Nvidia stock climbed about 8% in premarket trading Thursday after the AI chipmaker exceeded quarterly expectations and provided an outlook that came in above Wall Street forecasts. The results helped lift sentiment across both technology and cryptocurrency markets.
The Invesco QQQ gained more than 1%, while Bitcoin rose over 1% in the previous 24 hours, approaching $80,000. AI infrastructure stocks also moved higher, with IREN advancing around 5%, while TeraWulf and Cipher Mining each added roughly 3%.
For its fiscal second quarter, Nvidia posted $96.2 billion in revenue, beating the $92.27 billion consensus estimate. Adjusted EPS was $2.22, ahead of analysts’ $2.09 forecast. The company expects third-quarter revenue to reach $108 billion, compared with Wall Street’s $103.9 billion projection.
Nvidia expects revenue to expand by approximately 70% in fiscal 2028, although its customers have indicated that demand could potentially double. The company said supply is expected to remain the main factor limiting growth through the end of that fiscal year.
CEO Jensen Huang said during the earnings call that AI agents could require 15 to 100 times more computing capacity than interactions based on conventional human prompts.
However, Nvidia expects gross margins to fall to a low of around 71% to 72% in the fourth quarter, largely because of rising memory expenses. The company’s forecast also excludes data-center computing revenue from China as geopolitical uncertainty continues.
In a separate development, The Information reported that Nvidia has agreed to purchase open-source AI platform Hugging Face for $12.9 billion.
The acquisition would give Nvidia control of a major hub for sharing and deploying open-source AI models. It would also expand the company’s reach beyond chips and data-center infrastructure and further into AI software and model development.
