Nvidia stock jumps on strong earnings, growth forecast amid Hugging Face acquisition rumors
Nvidia Corporation announced better-than-expected quarterly results and issued a strong growth forecast for the upcoming fiscal year. The company's stock rose following the news, which was accompanied by reports of a potential $13 billion acquisition of AI platform Hugging Face.
Nvidia Corporation (Nasdaq: NVDA) saw its stock price increase on Thursday, following the announcement of its second-quarter fiscal 2027 results, which surpassed analyst expectations. The company also provided a full-year guidance that surprised many in the artificial intelligence sector. This news was further amplified by reports suggesting Nvidia may be in talks to acquire AI repository Hugging Face for nearly $13 billion.
For the second quarter of fiscal 2027, Nvidia reported revenue of $96.2 billion, a 106% increase year-over-year. Data center revenue grew by 117% to $89.0 billion, and adjusted earnings per share rose approximately 120%.
CEO Jensen Huang stated that artificial intelligence has reached "its inflection point" and that demand is accelerating. Huang highlighted that a significant portion of Nvidia's data center buildout business is no longer reliant on a single customer, reducing dependence on large clients such as OpenAI.
The company also forecast significant revenue growth of 70% for fiscal year 2028, reinforcing the narrative of accelerating AI demand.
Separately, reports indicate Nvidia has offered to purchase Hugging Face, a popular platform for AI models, for $12.9 billion. Hugging Face serves as a major hub for the open-weight and open-source AI communities. This potential acquisition could solidify Nvidia's influence in this ecosystem, especially as major tech players develop their own custom chips to lessen their reliance on Nvidia.