Nvidia shares rose 8.7% on August 27, adding about US$442 billion in market value after the chipmaker forecast roughly 70% revenue growth next fiscal year.

The forecast was above expectations of about 45%.

The gain was the second-largest one-day increase in market value on record, behind Microsoft’s roughly US$450 billion jump less than a month earlier.

Nvidia is now valued at about US$5.5 trillion.

The forecast reassured investors that AI-related growth remains strong.

It also comes amid a broader AI infrastructure spending cycle that some industry estimates say is tracking trillions, with data center capital expenditure projected to reach US$3 trillion.

Nvidia’s outlook still faces China-related policy risk.

US restrictions on advanced AI chips remain a factor, and Nvidia and AMD have agreed to a 15% levy on revenue from chip sales to China.

🔗 Source: Bloomberg