Nvidia Revenue Forecast Fuels Global Equity Rally Amid Rate Hike Bets
Global equities rallied after Nvidia projected a 70 percent revenue increase for fiscal 2028, overshadowing persistent inflation concerns and rising bets on a Federal Reserve interest rate hike.
Global equity markets advanced after Nvidia projected a massive revenue expansion for fiscal 2028, triggering a broad rally in technology shares. The chipmaker’s stock jumped 4.2 percent in extended trading, lifting Nasdaq 100 futures by 1.2 percent and S&P 500 futures by 0.6 percent. This surge demonstrated the enduring market reliance on artificial intelligence narratives to drive broader index performance.
During a post-earnings conference call, Chief Financial Officer Colette Kress stated that the company expects revenue to grow by approximately 70 percent in fiscal 2028. This forward guidance significantly exceeds the roughly 45 percent increase previously projected by market analysts, signaling robust long-term demand for advanced computing hardware.
The optimistic outlook generated immediate spillover effects across the wider semiconductor sector. Peers including Marvell Technology Inc. and Sandisk Corp. also recorded notable gains in after-hours trading. Investors rapidly reassessed the multi-year growth trajectory of companies supplying critical artificial intelligence infrastructure.
This positive momentum seamlessly carried over into early Asian trading sessions. MSCI’s Asia Pacific stock gauge climbed 0.6 percent, reflecting regional optimism. South Korea’s Kospi Index led the advance, reinforcing its status as a primary bellwether for global AI-related capital investments.
Despite the equity enthusiasm, macroeconomic headwinds continued to heavily shape fixed-income and currency markets. Traders increased their bets on a Federal Reserve interest-rate hike later this year. This shift followed fresh data showing a key US inflation gauge remaining stubbornly above the central bank’s target.
Consequently, short-dated US Treasuries underperformed during the regular trading session, while the dollar strengthened against major peers. Money markets are now fully pricing in a rate increase by December. This dynamic reflects lingering caution among bond investors regarding the persistence of inflationary pressures.
In the energy sector, Brent crude extended its recent declines, trading near $87.20 a barrel. Market participants carefully weighed recent diplomatic progress in the Middle East. These developments were balanced against escalating geopolitical tensions surrounding the ongoing Russia-Ukraine conflict.
