Nvidia Shares Surge as AI Demand Fuels Record Revenue

The quarterly revenue figure represents a 106% increase year over year, with the Data Center division accounting for $89 billion of the total. Driven by this momentum, the company issued a robust third-quarter outlook of $108 billion, comfortably exceeding Wall Street’s $104 billion consensus. CFO Colette Kress noted that while growth could theoretically double, supply constraints will likely temper the expansion to approximately 70% through fiscal 2028.

This technology rally rippled across broader markets, pulling Bitcoin toward the $80,400 level. Bitcoin mining firms with AI-integrated infrastructure, including IREN, TeraWulf, and Cipher Mining, saw gains between 3% and 5% before the market opened. These miners have increasingly pivoted toward high-performance computing, a strategy highlighted by IREN’s $3.4 billion infrastructure agreement with Nvidia.

Despite the bullish sentiment, hurdles remain for the chip giant. Management expects gross margins to dip slightly to between 71% and 72% in the fourth quarter, citing rising memory costs. Furthermore, the company’s guidance explicitly excludes compute revenue from China, acknowledging ongoing geopolitical export restrictions. Meanwhile, reports circulating regarding a potential $12.9 billion acquisition of Hugging Face remain unconfirmed by either party, leaving investors to focus on Nvidia’s ability to scale supply capacity to meet its aggressive revenue projections.