Nasdaq leads Wall St higher as Nvidia eases AI growth concerns

Nvidia announced record-breaking results for the quarter ending in July 2026, surpassing Wall Street's expectations. The company's stock surged by over 7% in early trading following the announcement. Nvidia forecasts a steep increase in demand for high-end AI accelerators, projecting revenue of around $108 billion for the current quarter.

The company expects its revenue to grow by approximately 70% in fiscal 2028, a significantly higher projection compared to analysts' estimates of a 45% growth. During a post-earnings conference call, Nvidia CFO Colette Kress stated that demand for AI accelerators is increasing among data center customers, despite concerns from some institutional investors about a potential AI bubble.

Nvidia's CEO, Jensen Huang, revealed that the next-generation AI accelerator, known as Vera Rubin, is now in production. The company's recent pivot towards AI chips has led to its market capitalization exceeding $5 trillion, positioning Nvidia as a major player in the AI hardware market. The company is set to expand its AI hardware business beyond data centers and into the consumer market through a partnership with Perplexity to launch the Portable Computer AI agent, which will run locally on PCs and workstations.