Nvidia's Explosive Revenue Forecast Sends Nasdaq Higher, Lifts Chip Sector

Nvidia Earnings Catalyst Drives Broad Market Gains

Nvidia (NVDA) delivered another blockbuster earnings report on Thursday, sending its shares surging nearly 7% and pulling major U.S. equity indexes into positive territory. The chipmaker's second-quarter revenue more than doubled year-over-year, and its projection of 70% revenue growth for fiscal year 2028 gave investors fresh confidence in the durability of the AI hardware boom.

The Nasdaq Composite closed up 0.8%, while the S&P 500 (^GSPC) gained 0.4%. The Dow Jones Industrial Average (^DJI) added roughly 35 points, a modest 0.1% advance, rounding out a broad-based — if measured — market rally.

Semiconductor Sector Rides Nvidia's Coattails

The ripple effects of Nvidia's results spread quickly across the chip sector. Shares of Broadcom (AVGO) and Marvell Technology (MRVL) each climbed 2%, while memory chipmaker SK Hynix (SKHY) and chip designer Arm Holdings (ARM) both posted gains of approximately 4%. The synchronized move higher underscores how closely the fortunes of the semiconductor industry remain tied to Nvidia's trajectory and the broader demand picture for AI infrastructure.

Nvidia's fiscal 2028 revenue growth guidance of 70% is a notable signal for suppliers and partners throughout the chip ecosystem, as it implies continued heavy capital spending on AI accelerators and the supporting hardware that makes large-scale AI deployments possible.

Software Names Add to the Bullish Tone

Beyond semiconductors, two high-profile software companies added significant momentum to Thursday's session. Salesforce (CRM) surged 13% after reporting quarterly revenue that exceeded analyst expectations, demonstrating that enterprise software demand remains healthy even as companies navigate shifting technology priorities.

Okta (OKTA) was an even bigger standout, jumping more than 20% following a report that highlighted surging demand driven by agentic AI — the emerging category of AI systems capable of autonomously completing complex, multi-step tasks. The outsized move suggests markets are beginning to price in a new wave of enterprise AI adoption that extends well beyond foundational model infrastructure.

Wall Street Sees Robust AI Fundamentals

The day's results prompted renewed commentary from major institutional voices. UBS Global Wealth Management Chief Investment Officer Mark Haefele and his team addressed the AI investment thesis directly in a Thursday morning note, stating: "We retain our conviction in the broader AI growth story and believe it remains a key driver of our positive market outlook."

Haefele's team acknowledged that lingering questions around the sustainability of AI capital expenditure and the structure of certain AI financing arrangements could continue to inject periodic volatility into technology stocks. Nevertheless, they argued the second-quarter earnings season has demonstrated that underlying fundamentals remain strong — a view that Thursday's batch of results appeared to support.

Jackson Hole Adds Another Variable

Market participants are also tracking developments at the Federal Reserve's annual Jackson Hole symposium in Wyoming, which kicked off Thursday. The gathering traditionally serves as a venue for central bank officials to signal shifts in monetary policy thinking, and traders will be parsing any commentary from Fed Chair Jerome Powell and other policymakers for clues about the interest rate path ahead.

Wednesday's session had seen the major indexes close little changed, making Thursday's gains a meaningful step forward — one largely attributable to the earnings firepower provided by Nvidia and its software counterparts.

What to Watch Going Forward

With Nvidia's guidance now on the table, attention will turn to how the company's key customers — cloud hyperscalers and enterprise data center operators — respond in their own forward projections. Any commentary from the Jackson Hole symposium that touches on financial conditions or risk appetite could also influence how investors position themselves heading into September.

The strong showing from Okta in particular warrants monitoring, as agentic AI demand represents a relatively new demand driver that analysts are still working to quantify. If the trend proves durable, it could broaden the universe of AI beneficiaries well beyond the hardware layer that has dominated the narrative so far.