{"id":872928,"date":"2026-08-27T04:44:17","date_gmt":"2026-08-27T04:44:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/872928\/"},"modified":"2026-08-27T04:44:17","modified_gmt":"2026-08-27T04:44:17","slug":"nvidia-stock-jumps-after-early-dip-following-results-ai-fever-is-unabated","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/872928\/","title":{"rendered":"Nvidia stock jumps after early dip following results; AI fever is unabated"},"content":{"rendered":"

Nvidia\u2019s \u200c(NVDA-Q<\/a>) investors got a roller coaster ride after the market closed on Wednesday, with its shares jumping after an early dip following the company\u2019s quarterly results, highlighting Wall Street\u2019s elevated expectations for its favorite AI chip designer. <\/p>\n

Nvidia handily beat the consensus estimates for its second quarter \u2060and raised its \u200bthird-quarter guidance. Second-quarter data center revenue rose 117% from a year ago to US$89 billion, and the company said third-quarter revenue across the Santa Clara, California, firm should hit US$108 billion, give or take. <\/p>\n

Fans of the company saw more good news for the AI trade. But at first it was not quite good enough after a long run by Nvidia and the other megacap tech stocks. Shares opened the after-hours session lower \u200band were little changed in late trading in the 40 minutes following the report. <\/p>\n

The \u200cmood picked up with the firm\u2019s conference call. CEO Jensen Huang and other executives said the firm expects revenue in fiscal 2028 to rise 70%, elaborating on his statement that AI had reached an inflection point. Nvidia rose 4.2% in heavy trading of more than 50 million shares, LSEG data show.<\/p>\n

\u201cIt\u2019s hard to interpret the report as anything less than amazing,\u201d said Seth Hickle, chief investment officer at Mindset Wealth Management, which owns both Nvidia shares and put options that give it \u200cthe right though \u200bnot the obligation to sell shares at a \u200ccertain price by a specified date.<\/p>\n

Results from Nvidia, one of the world\u2019s most valuable firms, are considered a bellwether for \u200bthe AI market as its chips power most major data centers and advanced \u2060AI models globally. Companies including Microsoft and Meta Platforms \u2014 two of Nvidia\u2019s biggest customers \u2014 have recently reinforced expectations that Big Tech \u2060would spend more than US$730 billion on AI infrastructure this year. That unprecedented sum marks a big step up from last year\u2019s US$400 billion outlay.<\/p>\n

Nvidia has been one of the most \u200bdependable performers in Silicon Valley in recent years and the signature stock of the AI-driven bull market that began nearly four years ago. Nvidia shares have soared some 1,700% in that time as the semiconductor giant became the world\u2019s largest company by market value. This year, though, its stock performance has been eclipsed by other chip companies seen benefiting from the massive buildout of AI data centers, while investors are increasingly anxious about the implications of the financing actions many large firms are taking. Nvidia \u2060shares are up more than 12% year-to-date, trailing an over 60% rise for the Philadelphia SE Semiconductor index, but Nvidia remains a bellwether for the AI trade.<\/p>\n

Pressure on many prominent AI firms stems from concerns about so-called circular deals featuring producers of AI goods as financiers of other firms. Skeptics warn this practice could artificially inflate demand, distort broader economic signals and raise the risk of a sharp market pullback.<\/p>\n

Nvidia said on Wednesday afternoon that its maximum gross exposure under all land, power and shell guarantee agreements totals $3.5 billion, a fraction of its quarterly revenue.<\/p>\n

\u201cIt\u2019s positive news for the AI sector,\u201d said Chuck Carlson, chief executive \u200bofficer at Horizon Investment Services in Hammond, Indiana, which owns Nvidia shares.<\/p>\n

\u201cHow it translates to AI stocks, that\u2019s a tougher thing because the market right \u2060now, we\u2019re in the midst of a rotation and is that rotation going to continue or is this going to jumpstart those stocks again?\u201d Carlson added. \u201cI don\u2019t know if it was enough to \u200cdo that, but in terms of the AI idea or investment thesis, I think this is still solid.\u201d <\/p>\n

The market has been through several cycles of \u200bNvidia excitement. Heading into Wednesday\u2019s report, Nvidia had beaten analyst estimates for eight straight quarters. The chipmaker\u2019s options were pricing in a 5.4% move in either direction when trading opens on Thursday, below the 6.5% move implied ahead of its May earnings report.<\/p>\n

\u201cWith Nvidia trading within the market\u2019s implied move, the options market got it right for now,\u201d said Hickle. \u201cThe challenge for Nvidia isn\u2019t delivering good numbers \u200banymore, it\u2019s delivering better than the great numbers investors already expect. In this case, beating Wall Street estimates is almost the price of admission.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia\u2019s \u200c(NVDA-Q) investors got a roller coaster ride after the market closed on Wednesday, with its shares jumping…\n","protected":false},"author":2,"featured_media":872929,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-872928","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/872928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=872928"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/872928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/872929"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=872928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=872928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=872928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}