Key Takeaways
- Nvidia shares declined to $219 on September 11, marking the lowest price point since early September
- CEO Jensen Huang reinforced his $3 trillion to $4 trillion AI industry valuation forecast at Goldman Sachs’ Communacopia & Tech conference
- Second quarter revenue reached $96.2 billion, representing a 106% year-over-year increase and surpassing analyst expectations of $92.3 billion
- The company projected 70% revenue expansion for fiscal 2028, significantly exceeding Wall Street’s 45% estimate
- Technical analysts note a cup-and-handle formation on daily charts, with $236 identified as a critical resistance level
Shares of Nvidia (NVDA) declined to $219 on September 11, retreating from a monthly peak of $234, despite CEO Jensen Huang delivering an optimistic outlook for artificial intelligence at a major industry gathering.
Speaking at the Goldman Sachs Communacopia & Tech conference on Thursday, Huang maintained the same bullish stance he first presented a year earlier. He doubled down on his projection that the artificial intelligence market will expand to between $3 trillion and $4 trillion by the end of this decade.
“The semiconductor industry is going to just keep getting larger and larger,” the CEO stated. He identified the emergence of new computing architectures, the limitations of Moore’s law, and accelerating demand for advanced AI capabilities as primary catalysts.
These remarks followed an impressive quarterly performance. The chipmaker delivered adjusted earnings of $2.22 per share on total revenue of $96.2 billion, surpassing Street consensus of $2.09 per share and $92.3 billion in sales.
The Data Center segment generated $89 billion in revenue, exceeding the $85.8 billion projection. Edge Computing operations, encompassing gaming and physical AI applications, contributed $7.2 billion compared to analyst estimates of $6.6 billion.
Sales Expansion Outpaces Projections
Revenue jumped 106% on a year-over-year basis and increased 18% sequentially. Net income surged to $59 billion, exceeding Nvidia’s entire revenue figure from the second quarter of the previous fiscal year.
Profitability metrics also strengthened, with gross margin expanding from 72.4% in Q2 fiscal 2026 to 75% in Q2 fiscal 2027.
Looking ahead to fiscal 2028, the semiconductor giant issued guidance calling for 70% revenue growth. This projection stands well above the 45% expansion rate analysts had anticipated. Huang suggested growth could potentially exceed 100% if supply constraints on memory chips were resolved.
“We are struggling to meet demand every day,” CoreWeave (CRWV) CEO Michael Intrator remarked at the same industry event. “Every GPU we have could be sold to multiple different clients.”
Nvidia maintains an 11.5% ownership position in CoreWeave and serves as the exclusive supplier of graphics processing units for the company’s AI infrastructure facilities.
Chart Pattern Analysis
From a technical perspective, NVDA shares have developed a cup-and-handle formation on the daily timeframe, a pattern market participants often interpret as a bullish continuation signal. The equity has maintained support above its 100-day Exponential Moving Average throughout the recent consolidation.
Wall Street analysts project annual revenue will hit $411 billion, with potential for an additional 77% surge the subsequent year to $727 billion.
These revenue projections exclude potential contributions from Chinese market sales or income generated by Nvidia’s central processing unit products, which target a sector historically dominated by AMD and Intel.
According to a PWC research report, global spending on AI data center infrastructure is expected to reach $32 trillion between now and 2050, a forecast that would sustain robust demand for Nvidia’s semiconductor products.
NVDA stock was changing hands near $219 as of September 11, with market participants monitoring $236 as the next significant price target should the shares break higher.
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