AI Stocks Soar as Nvidia Crushes Earnings Expectations
Nvidia's blockbuster earnings have lifted futures linked to main U.S. stock indices, following strong quarterly revenue and a bullish medium-term outlook.
Shares in Nvidia rose after the company reported better-than-expected second-quarter revenue and current-quarter sales guidance of $108 billion.
The AI giant's CFO Colette Kress said revenue growth of 70% is now expected in the company's 2028 fiscal year, far above FactSet data predictions of 45%.
Meanwhile, Salesforce raised its full-year sales and profit outlook after beating earnings expectations for the second quarter, with CEO Marc Benioff saying AI is delivering value across every layer of their platform.
Nvidia's balance sheet investments in helping customers construct data centers are seen as a key factor in the company's growth prospects, with Kress arguing that large frontier AI labs will become 'the largest technology companies in history.'