NVIDIA Corporation (NVDA.US) shares elevated in Thursday's (27th) pre-market session after the chip giant's revenue guidance convinced investors that AI demand will remain strong.

The stock was last up 5.95% in pre-market trading.

NVIDIA CFO Colette Kress said on Wednesday (26th) that the company estimated revenue to grow 70% in FY2028, which runs from February 2027 to January 2028. CEO Jensen Huang said demand is way above 70%, but the company is constrained by the volume of products it can supply.

TSMC (TSM.US), NVIDIA's main manufacturer, continues to face supply constraints, while memory chips, a key component in NVIDIA's systems, also remain in short supply.

Analysts on Thursday also pointed out that customized semiconductors recently announced by hyperscale cloud service providers and AI labs such as OpenAI pose a "threat" to NVIDIA's near-monopoly position in the most advanced AI chip market.

Huang said NVIDIA has never made forecasts one year in advance in the past, but the company now has greater visibility across the entire supply chain, enabling it to make such projections.

NVIDIA issued the forecast as investors remain concerned about capital expenditure by major tech companies, the cyclicality of financing deals, and returns on AI investments.

The tech giant's comments on AI demand appeared to ease some of those concerns. Jensen Huang said AI has reached an inflection point, with the number of companies requiring large GPU clusters having increased significantly.
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AASTOCKS Financial News
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