August 27, 2026 (Inside AI) — Nvidia's latest quarterly report erased lingering doubts about AI demand. The chip giant's stock climbed nearly 5% overnight after data center revenue more than doubled year over year.
Projected sales growth of 70% for 2027 reinforced investor confidence. Reports of a planned $13 billion acquisition of AI platform Hugging Face, recently hacked, did little to cool enthusiasm.
The results landed ahead of the Federal Reserve's Jackson Hole Symposium, where inflation data added pressure. U.S. PCE inflation came in slightly hotter than forecast, with annual headline and core rates at 3.7% and 3.3% respectively.
Memory chips pushed prices higher, reflecting their larger share in the PCE index compared to the consumer price basket. Fed Chair Kevin Warsh is set to deliver a keynote on Friday.
Software and Security Rally Reshapes Tech Sentiment
Salesforce and CrowdStrike each jumped more than 10% before Thursday's opening bell. Salesforce's upbeat results and its linkup with AI lab Anthropic underscored a rebound in a battered software sector.
The software-as-a-service industry had suffered earlier this year on fears that rapid AI development would destroy business models. The sector has now recouped all losses from the past year, though it still trails the S&P 500 by roughly 30%.
Asian markets showed mixed reactions. South Korea's KOSPI rose 1.5%, while Japan's Nikkei dipped slightly, weighed down by Nvidia supplier Advantest.
Regulatory and Macro Pressures Loom Over Tech Giants
Meta Platforms agreed to pay up to $18 billion over the next decade and strictly limit how teenagers use Facebook and Instagram. The settlement resolves claims that the company designed its platforms to addict children.
Oil prices kept slipping as Iran and Oman worked to finalize an agreement on the Strait of Hormuz, according to a senior Iranian source. In Europe, ECB officials indicated another rate rise next month, with little appetite for further hikes after that.
European bond markets braced for the rate move and a tense government budget season in France and elsewhere. Treasury auctions of $44 billion in 7-year notes and $70 billion in 5-year notes are scheduled today.
