Nvidia shares climbed close to 9% on Thursday after the chip maker posted quarterly results that beat expectations. The jump added roughly $440 billion to the company's market value in a single day.
The strong showing pushed Nvidia's market capitalization above $5 trillion. That makes it the most valuable public company in the world.
Nvidia brought in $96 billion in revenue for the quarter. That figure is more than double what the company made during the same period last year.
The company also gave guidance for the next quarter, saying it expects to bring in $108 billion in revenue. Wall Street had been watching closely for signs that AI spending might slow down.
What Nvidia's Leadership Said
CEO Jensen Huang said artificial intelligence has "reached its inflection point." He explained that the number of companies needing large clusters of graphics processing units has grown a lot over the past year.
Huang pointed out that a year ago, one major lab was driving most of the demand for AI computing power. Now he says there are many AI labs and startups scaling up at the same time.
The company's chief financial officer, Colette Kress, said Nvidia expects revenue growth of 70% for its 2028 fiscal year. Huang added that actual demand is even higher than that, but supply limits are holding the company back.
Nvidia's data center division alone generated $89 billion in revenue during the quarter. That is up 117% compared to a year earlier.
Nearly every major tech company building AI tools relies on Nvidia chips. That list includes Amazon, Meta, Google, and Microsoft.
Supply Chain Pressures and New Competition
Taiwan Semiconductor Manufacturing Company, which builds most of Nvidia's chips, continues to face supply constraints. Memory chips, another key part of Nvidia's systems, are also running short.
Analysts have flagged a growing challenge to Nvidia's position at the top of the AI chip market. Some of Nvidia's own customers, including hyperscalers and AI labs, are now building custom chips of their own.
Despite that, several other chip stocks rose after Nvidia's earnings came out. Broadcom and Intel both gained ground, and shares of Nebius rallied as well.
Nvidia has also become a financial backer for companies that depend on its chips. It has provided funding to firms including OpenAI, Anthropic, and SpaceX to support the buildout of AI infrastructure.
The company is reportedly working on a deal to buy Hugging Face, an open source AI platform, for $12.9 billion. If the deal goes through, it would give Nvidia more control over the software side of the AI ecosystem, not just the hardware.
Around 40% of the US stock market is concentrated in ten companies with heavy AI investments. That means Nvidia's performance continues to carry weight far beyond its own stock price.
The company's next earnings report will show whether the $108 billion revenue forecast holds up as supply constraints continue to play out.
