Nvidia shares surged on Thursday, August 27, after the chipmaker’s upbeat long-term revenue outlook strengthened investor confidence in continued demand for artificial intelligence infrastructure. Shares jumped 7% at the open, adding about $359 billion to the chipmaker’s market value.
The stock was up 7.8% at $226.12 as of 10:28 am EDT, extending its post-earnings rally. The upbeat outlook lifted the broader semiconductor sector. Micron Technology rose 4.5%, Marvell Technology gained 5.7%, Arm Holdings climbed 4.7%, Intel advanced 3% and Advanced Micro Devices added 1.7%.

AI-focused cloud companies Nebius and CoreWeave also gained around 7.5% and 6%, respectively. Nvidia Chief Financial Officer Colette Kress said the company expects revenue growth of 70% in fiscal 2028, which runs from February 2027 to January 2028. Chief Executive Officer Jensen Huang said demand was “much greater than 70%”, although supply constraints were limiting how much product Nvidia could deliver, CNBC reported.
Nvidia’s main manufacturing partner, Taiwan Semiconductor Manufacturing Co, continues to face supply constraints, while shortages of memory chips, a key component of Nvidia’s systems, are also restricting supply. Nvidia Sees AI Demand At ‘Inflection Point’Huang said Nvidia had never previously forecast revenue a year ahead but now has greater visibility across its supply chain.

He described AI as having reached an “inflection point”, with demand expanding beyond a small number of major technology companies.“This time last year, one lab alone was driving the build-out,” Huang said, pointing to the emergence of multiple frontier AI labs and startups, the growth of open-source models and the development of physical AI.
The comments come as investors remain concerned about the scale of capital spending by major technology companies, the complex financing arrangements supporting AI infrastructure and whether investments in the technology will generate sufficient returns.

Nvidia’s latest disclosures also highlighted the scale of its financial commitments to the AI ecosystem. The company has reported $99 billion in equity investments and committed a further $25 billion, according to the information provided. Nvidia also has significant credit-support commitments tied to AI infrastructure.
Huang defended the company’s investments in leading AI developers, saying investing in companies such as Anthropic and OpenAI represented a “once in a generation opportunity”. He added that his only regret was not investing “more and sooner”, while noting that both companies could eventually go public.

Nvidia-Hugging Face Deal Puts AI Strategy In FocusNvidia has agreed to acquire AI platform Hugging Face for $12.9 billion, according to The Information, in what would be one of the chipmaker’s largest acquisitions. Reuters reported that the deal would give Nvidia control of a widely used platform hosting open-source AI models and datasets, strengthening its position across the AI software ecosystem.
The reported price is substantial compared with Hugging Face’s revenue. The Information reported that the company was generating about $150 million in annualised revenue, up from roughly $100 million a few months earlier. That implies a purchase price of about 86 times annualised revenue.

The acquisition would deepen Nvidia’s ties with AI developers at a time when companies such as OpenAI and Anthropic are exploring alternatives to Nvidia’s chips. Reuters reported that Nvidia had previously backed Hugging Face in a $235 million funding round in 2023 that valued the company at $4.5 billion.
Nvidia’s broader investment strategy has also attracted investor scrutiny. Reuters Breakingviews estimated the company’s wider equity investments and financial commitments across the AI ecosystem at a significant scale, including investments in AI developers and cloud operators.