Key Highlights
- NVDA shares declined to $219 on September 11, marking the lowest point since September 2
- CEO Jensen Huang reinforced his $3T-$4T artificial intelligence market projection at Goldman Sachs Communacopia & Tech conference
- Quarterly revenue reached $96.2 billion, representing 106% annual growth and exceeding $92.3 billion consensus
- Company forecasts 70% revenue expansion for fiscal 2028, significantly outpacing analyst projections of 45%
- Technical analysis reveals cup-and-handle formation on daily charts, with $236 emerging as critical resistance level
Nvidia (NVDA) shares retreated to $219 on September 11, pulling back from a monthly peak of $234, despite CEO Jensen Huang delivering an optimistic presentation about artificial intelligence’s future at a major technology conference.
During his Thursday appearance at Goldman Sachs’ Communacopia & Tech conference, Huang doubled down on predictions he initially shared exactly twelve months earlier. He maintained his projection that the artificial intelligence sector will expand to between $3 trillion and $4 trillion by the end of the decade.
“The semiconductor industry is going to just keep getting larger and larger,” Huang stated. He identified three primary catalysts: an emerging computing paradigm, the conclusion of Moore’s law, and accelerating requirements for increasingly sophisticated AI systems.
These remarks followed impressive quarterly financial results. The company delivered adjusted earnings of $2.22 per share alongside $96.2 billion in revenue, surpassing Street expectations of $2.09 per share and $92.3 billion in sales.
The Data Center segment generated $89 billion, 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.
Financial Performance Exceeds Expectations
Revenue expanded 106% compared to the prior year period. Sequential growth registered at 18%. Net income soared to $59 billion, surpassing Nvidia’s entire revenue figure from Q2 of the previous fiscal year.
Gross profit margins strengthened from 72.4% in Q2 fiscal 2026 to 75% in Q2 fiscal 2027.
Looking ahead to fiscal 2028, Nvidia projects 70% revenue growth. Wall Street consensus had anticipated 45%. Huang suggested growth could potentially exceed 100% absent supply constraints in memory chips.
“We are struggling to meet demand every day,” said CoreWeave (CRWV) CEO Michael Intrator, speaking at the same conference. “Every GPU we have could be sold to multiple different clients.”
Nvidia maintains an 11.5% ownership position in CoreWeave while serving as the exclusive GPU supplier for its AI infrastructure facilities.
Chart Analysis
From a technical perspective, NVDA has developed a cup-and-handle pattern on daily timeframes, a configuration often interpreted as a bullish continuation indicator. The equity has maintained support above its 100-day Exponential Moving Average throughout recent weakness.
Wall Street projects Nvidia’s annual revenue will climb to $411 billion, with potential for an additional 77% surge the subsequent year to $727 billion.
These estimates exclude possible revenue contributions from Chinese market sales or the company’s CPU product portfolio, which represents an expansion into territory traditionally dominated by AMD and Intel.
A PWC analysis forecasts cumulative AI data center investment will total $32 trillion extending through 2050, a trajectory that would sustain robust demand for Nvidia’s semiconductor products.
NVDA was changing hands near $219 as of September 11, with market participants monitoring $236 as the next significant technical threshold following any upside breakout.
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