New York, November 11: Nvidia Corp. shares rallied 6% in after-hours trading following the chipmaker’s upbeat quarterly forecast, signaling continued strength in AI hardware demand. However, the broader market sentiment remained cautious, with S&P 500 futures dipping amid renewed valuation concerns across the tech sector.
The company projected fourth-quarter revenue above Wall Street estimates, citing sustained demand for its H100 and next-gen AI GPUs used in data centers worldwide. Analysts hailed Nvidia’s guidance as “a reaffirmation of AI’s structural growth story.”
“We’re seeing unprecedented global demand for accelerated computing,” said Nvidia CEO Jensen Huang, adding that the company will continue to expand supply capacity into 2026.
Despite the optimism, traders noted that high valuations among megacap tech stocks are reigniting fears of overheating in the market. The Nasdaq 100 futures slipped about 0.3%, while Dow futures were largely flat.
The S&P 500 closed lower in regular trading amid profit-taking in software and semiconductor names, even as Nvidia’s results offered short-term relief. Market analysts pointed to rising Treasury yields and uncertainty over Fed policy as ongoing headwinds.
Investors now turn to this week’s U.S. inflation data and Federal Reserve speeches for clues on rate trajectories and the broader economic outlook.
