Artificial intelligence infrastructure stocks surged in premarket trading Thursday after Nvidia and Nutanix delivered stronger-than-expected quarterly results and highlighted expanding partnerships with major technology providers.
Nvidia shares jumped 7.3% to $224.91, marking the first post-earnings gain after five consecutive quarterly reports. The company projected 70% sales growth for its next fiscal year, far above Wall Street expectations of less than 50%. CEO Jensen Huang said sales could double if supply constraints were not holding the company back, a notable statement for a company valued at over $5 trillion.
Nvidia also announced an expanded partnership with Amazon, under which Amazon will deploy an additional two million Nvidia processors. The move directly addresses concerns that hyperscale customers were shifting toward custom chips. Separately, Nvidia agreed to acquire AI development platform Hugging Face for $12.9 billion, according to The Information.
The report was not without scrutiny. Nvidia said gross margins are expected to decline in the near term because of rising memory prices, and some critics pointed to balance sheet guarantees for customer debt. CFO Colette Kress pushed back, saying the equity returns on invested capital will be excellent. UBS raised its price target to $300 from $280, while Raymond James set a $515 target and Cantor Fitzgerald kept a $350 target.
Nutanix rose 6.1% after revenue reached $757.1 million, up 16% year over year and above the $738 million estimate. Adjusted operating income came in at $198 million versus the $164 million expected, and annual recurring revenue reached $2.55 billion. For fiscal 2027, Nutanix guided revenue between $3.18 billion and $3.23 billion, with a non-GAAP operating margin of 24% to 25%.
Nutanix pointed to its partnership with AMD, which agreed to purchase $150 million of Nutanix stock and provide up to $100 million in funding to develop infrastructure for agentic AI applications. CEO Rajiv Ramaswami said the company added more than 3,000 new customers and expanded relationships with Nvidia, Lenovo, and NetApp. KeyBanc analyst Brandon Nispel kept an Overweight rating and raised his price target to $79 from $75.
The combination of accelerating enterprise AI demand, large-scale processor deployments, and strategic acquisitions reinforces the broader AI-infrastructure investment narrative. For crypto markets, the reports may support sentiment around AI-focused digital assets even though no specific token or blockchain project was directly involved.
