With Nvidia’s (NVDA) stock stuck in neutral for the better part of the summer as investors have fretted about peak AI, the chip darling decided to take one swift measure to silence the naysayers.

The action: serve up a rare long-term term outlook that blew everyone on the Street away.

Nvidia said late Wednesday after reporting its fiscal second quarter earnings that it sees 70% revenue growth for fiscal year 2028. This was above analyst forecasts for 45% growth. The sales gain would be larger if not for memory chip shortages, said Nvidia CEO Jensen Huang.

“The first ever year ahead guidance is the real news,” said Stifel analyst Ruben Roy in a note. “We think the more revealing point is why they guided at all. Management framed it as getting customers, shareholders and the supply chain onto the same set of information, which in our view makes this as much a supply-chain coordination device as a forecast, and reassure suppliers to commit capacity and customers that BoM inflation was being absorbed too via the fiscal year 2028 ~72-73% gross margin guide (down from mid-70% prior).”

Shares of Nvidia rose nearly 8% in pre-market trading on the results and upbeat outlook. Prior to the earnings report, Nvidia shares had slightly underperformed the S&P 500’s year to date gain of about 14%.

To be sure, the company’s fiscal second quarter warranted a strong long-term outlook – that may end up proving conservative.

Nvidia saw adjusted earnings per share of $2.22 on revenue of $96.2 billion. These were better than the $2.09 a share the Street has expected and revenue of $92.3 billion.

Nvidia’s Data Center revenue, which includes Hyperscalers and AI Clouds, Industrial, and Enterprise (ACIE), came in at $89 billion versus a projected $85.8 billion.

Edge Computing, which includes Nvidia’s other businesses, such as physical AI and gaming, brought in $7.2 billion. Analysts were expecting $6.6 billion.

Nvidia projected fiscal third quarter revenue of between $105.8 billion and $110.1 billion. Wall Street was calling for $105.1 billion.

This would be the first quarter above $100 billion in revenue for Nvidia, said Stifel’s Roy.

“Nvidia’ earnings call reinforced exceptionally strong AI growth,” said Citi analyst Laura Chen in a note.

Brian Sozzi is Yahoo Finance’s Executive Editor, host of the ‘Power Players With Brian Sozzi’ podcast and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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