Key facts
- Nvidia forecast a 70% revenue jump and strong AI chip demand through early 2028.
- Nvidia is reportedly planning to acquire AI platform Hugging Face for $13 billion.
- Nvidia's strong forecast boosted Nasdaq futures and global tech stocks.
- Salesforce and CrowdStrike also reported upbeat results, leading to significant share price increases.
- U.S. PCE inflation data for last month showed annual headline and core rates at 3.7% and 3.3% respectively.
- European Central Bank officials indicated preparation for another rate rise next month.
Nvidia's strong quarterly update, including a forecast for a 70% revenue jump and continued AI demand, bolstered investor confidence and drove gains in Nasdaq futures and global tech stocks. The chip giant's CEO, Jensen Huang, expressed optimism about AI chip demand extending through early 2028. Reports of Nvidia's potential $13 billion acquisition of AI platform Hugging Face further fueled interest in the AI sector.
Beyond Nvidia, upbeat results from Salesforce and cybersecurity firm CrowdStrike also contributed to positive market sentiment, with both companies seeing significant share price increases. These developments rippled across the AI chip and infrastructure landscape, leading to a 1.5% rise in South Korea's KOSPI index. However, Japan's Nikkei dipped slightly, impacted by Nvidia supplier Advantest.
In other tech news, Meta Platforms agreed to a settlement of up to $18 billion to resolve claims regarding the addictive design of its social media platforms for teenagers. Meanwhile, U.S. PCE inflation data for the past month came in slightly hotter than anticipated, with annual headline and core rates at 3.7% and 3.3% respectively, potentially influencing Federal Reserve policy.
European Central Bank officials indicated that another rate hike is being prepared for next month, with limited appetite for further increases thereafter. European bond markets are anticipating this move and the upcoming government budget season in France and other European countries. Oil prices continued to decline amid news of diplomatic talks between Gulf states concerning the Strait of Hormuz.