Nvidia forecasts quarterly revenue above estimates, shares rise

Nvidia reported that its quarterly revenue had more than doubled, and the company forecasted third-quarter revenue to surpass Wall Street estimates, signaling strong demand for its AI chips. The firm also announced an expansion of its partnership with Amazon's cloud computing unit, with an additional 2 million Nvidia GPUs set to be deployed across Amazon's global infrastructure in 2027 and 2028.

Nvidia's shares rose significantly after-hours, jumping over 4%, as investors welcomed the company's growth strategy. The tech giant's strong performance is considered a key indicator for the AI market, as its chips power most major data centers and advanced models globally. Nvidia's forecast positions the company for substantial growth, with analysts expecting revenue to increase by about 70% in fiscal 2028.

The company's margins, however, face pressure due to the ramp-up for its Rubin chips and rising memory prices in the silicon supply chain.