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This is the second-largest one-day gain in a company’s market value in stock market history, following Microsoft’s surge of approximately $450 billion, according to Bloomberg. Nvidia remains the world’s largest publicly traded company by market capitalization: following the rally, its market cap reached approximately $5.5 trillion. The price surge was Nvidia’s largest since April 2025.
Nvidia’s forecast has once again fueled demand for AI
The main factor behind the surge was the company’s forecast for continued growth in its artificial intelligence-related business. Nvidia expects its revenue to increase by approximately 70% in the next fiscal year. This is significantly higher than analysts’ expectations, which were around 45%, the publication reports.
The forecast followed strong results for the second quarter of Nvidia’s fiscal year. The company’s revenue reached $96.2 billion, up 106% year-over-year, while adjusted earnings per share came in at $2.22. Revenue from the Data Center division—key to Nvidia’s AI business—rose to $89 billion.
For the current quarter, Nvidia forecasts revenue of about $108 billion, which also exceeds market expectations. At the same time, the company notes that its supply capacity is limited by manufacturing capacity—in other words, demand for AI infrastructure is currently outpacing Nvidia’s ability to fully meet it.
Nvidia is once again becoming the leading indicator of the AI boom
Nvidia’s record-high stock prices have sent an important signal to the entire tech market. Along with the chipmaker’s shares, stocks of other companies involved in semiconductor manufacturing and AI infrastructure have also risen. Major U.S. stock indices also closed higher on August 27: the Nasdaq gained 1.6%, the S&P 500 rose 0.7%, and the Dow Jones increased 0.2%.
What is particularly important for the market is not Nvidia’s latest quarterly results per se, but the company’s ability to demonstrate that spending by major tech corporations on data centers and AI infrastructure has not yet peaked.
Throughout 2026, investors increasingly questioned how sustainable the large-scale investment cycle surrounding artificial intelligence is and whether the largest tech companies would be able to justify their spending on building computing infrastructure. Analysts believe that Nvidia’s strong outlook has temporarily alleviated these concerns.
As Logos Press reported, Nvidia itself remains not only a supplier of AI infrastructure hardware but also an increasingly significant player in the ecosystem, investing in companies that are its customers. This boosts the company’s growth rate but simultaneously makes its financial risks more complex.
