Nvidia added roughly $370 billion in market value overnight after its latest earnings report showed revenue more than doubling and guidance that calmed concerns about the durability of artificial intelligence demand. The chipmaker, already the world’s most valuable listed company at $5.08 trillion before the release, saw its shares climb 7.3 per cent in after-hours trading to a projected open above $225, up from Wednesday’s close of $209.66.
Revenue doubles but guidance drives the move
Quarterly revenue reached $96.2 billion, more than double the year-earlier figure. Yet the stock was initially flat on the headline numbers and only rose around 5 per cent after the conference call, suggesting the commentary mattered more than the print. Management pointed to a sales pipeline stretching more than a year out and highlighted roughly $2 trillion of backlog, alongside 70 per cent growth guidance for the current quarter.
Circular finance fears eased
Concerns that Nvidia’s financing of its own customers had created a circular economy had dogged the stock. Chief executive Jensen Huang addressed those directly, and analysts came away reassured. “For now, the company has proven that criticism of its investment and financing model for AI is overblown,” said Kathleen Brooks, research director at XTB. Ben Barringer, head of technology research at Quilter Cheviot, noted that durability was the key question investors brought to the call and that management’s response was robust.
The marmite trade persists
Not everyone is convinced. Dan Coatsworth, head of markets at AJ Bell, cautioned that the pre-market rise would not sway long-term sceptics who see a bubble reminiscent of the dotcom era. Nvidia has now beaten revenue forecasts for 16 consecutive quarters and generates more than $1 billion a day in revenue, but the higher the price climbs, the larger the potential air pocket from profit-taking or a single missed expectation. The shares remain below their May closing high above $235.