Nvidia’s optimistic sales forecast boosted stock and futures prices, reinforcing investor optimism that this year’s artificial intelligence rally still has room to run.
Nvidia shares rose 4.7% in after-hours trading after the company projected strong revenue growth through 2028, lifting other AI-related stocks including Marvell Technology Inc. and Sandisk Corp. Futures for the tech-heavy Nasdaq 100 index gained 0.9%, while contracts also pointed to gains in European equities.
Nvidia’s outlook reaffirmed robust spending on AI infrastructure, easing concerns that the investment boom might be nearing its peak. After a turbulent period for tech stocks, investors have been closely watching whether massive AI investments can sustain profit growth—against this backdrop, Nvidia released its upbeat forecast.
Collette Kress, Nvidia’s CFO, said during the earnings call that the company expects revenue to grow by approximately 70% in fiscal 2028, well above analysts’ previous estimate of around 45%.
“These results further validate my bullish view on the AI investment theme and the broader technology sector,” said Ivan Feinseth, Chief Investment Officer and Research Director at Tigress Financial. “The AI infrastructure cycle is still in its early to mid-stages, not near its peak.”
However, Wednesday’s PCE data came slightly above expectations, reminding markets that inflationary pressures in the U.S. remain unresolved.
The core PCE rose 0.2% month-on-month and 3.3% year-on-year in July, matching forecasts; the headline PCE increased 3.7% annually, exceeding the expected 3.6%.
Now attention turns to the Jackson Hole Economic Symposium. Federal Reserve Chair Kevin Warsh will deliver his first major speech since taking office, offering investors new clues about policy direction after facing criticism for unclear economic views.
Market focus isn’t just on whether Warsh leans hawkish or dovish, but rather how he communicates the Fed’s balance between inflation, employment, long-term yields, and its credibility. If markets begin to worry about policy missteps, it could continue to weigh on U.S. equities.
