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Nvidia's premarket shares surged 7%, pulling chip stocks broadly higher after the company reported strong earnings and projected that revenue would rise 70% in the next fiscal year. The case for the rally writes itself.
What complicates it is that Nvidia framed the guidance as an effort to calm market jitter about AI compute demand, which means the jitter was real.
A 70% revenue growth expectation is the kind of forward projection that compresses a lot of skepticism fast.
Nvidia offered that number as its outlook for the next fiscal year, and the premarket tape sent the stock sharply higher and lifted the chip sector with it.
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