Nvidia's AI Windfall Sends Tech Stocks Soaring
Nvidia's strong quarterly results and forecast for the next fiscal year boosted optimism about AI investments. The Nasdaq Composite rose by 0.9%, the S&P 500 by 0.5%, and the Dow Jones Industrial Average also by 0.5% over the week.
The demand for Nvidia chips exceeded market expectations, with the company recording a fourth consecutive quarter of accelerating revenue growth. Its shares ended the week up 1%. In an earnings conference call, it was revealed that Amazon plans to purchase another 2 million Nvidia graphics processing units in 2027 and 2028.
Nvidia CFO Colette Kress said that the company's growth in the current quarter will primarily be driven by clients outside the largest cloud operators. She named neocloud companies CoreWeave and Nebius, as well as corporate customers, as key contributors to this growth.