Nasdaq futures jump 1.1% as Nvidia forecast lifts AI stocks

Nasdaq futures rose 1.1% after Nvidia's bumper earnings forecast renewed optimism around AI stocks, while software earnings eased sector concerns.

"Another monster set of results," said Matt Britzman, senior equity analyst at Hargreaves Lansdown, noting revenue and earnings both topped forecasts. He said the guidance for next quarter "points to revenue comfortably above $110 billion."

Nvidia reported second-quarter revenue of $96.2 billion, up 106% from a year earlier and above the $92.2 billion consensus. The chipmaker forecast $108 billion for the current quarter, plus or minus 2%, beating the $104.19 billion analysts expected. Data center revenue more than doubled to $89 billion, while adjusted earnings came in at $2.22 per share versus the $2.09 estimate. Nvidia shares jumped 7.5% premarket after gaining more than 4% in after-hours trading. Dow futures gained 0.1% and S&P 500 futures rose 0.5%.

The earnings come as Big Tech plans to spend more than $730 billion on AI infrastructure this year, up from $400 billion last year. Nvidia's forecast assumes no data center chip sales from China, where regulatory hurdles have stalled deliveries. The company also warned that "extreme" memory costs would pressure gross margins, guiding to 74% for the current quarter, plus or minus 50 basis points, down from 75% in Q2. CFO Colette Kress said supply would remain a bottleneck "at least through the end of fiscal year 28," even as the company projected 70% revenue growth for fiscal 2028 and expanded its AWS partnership to deploy 2 million additional GPUs.

Companies making the picks and shovels of the AI rush benefited most. Micron Technology rose 4.6% premarket, while software stocks surged — led by an 11.5% gain for Salesforce — after a sweep of bullish earnings presentations eased fears around AI competition. In Asia, South Korea's Kospi gained 1.5%, with Samsung Electronics up 1.7% and SK Hynix up 2.5%. European AI-linked stocks also jumped, with ASML adding 1.3%.

Oil slips as Oman-Iran talks progress

Oil prices pulled back as analysts cautiously welcomed progress in talks between Oman and Iran. Brent crude for October delivery fell 1.4% to $86.66 a barrel, while WTI contracts slipped 1.6% to $80.94. European stocks drifted more broadly as weakness in oil majors and luxury stocks dragged.

Treasury investors' focus shifts to Fed Chair Kevin Warsh's appearance at the Jackson Hole symposium Friday. Wednesday's PCE data showed inflation stubbornly above the Fed's 2% target, adding pressure on Warsh to signal openness to raising rates, Danske Bank analysts led by Jesper Fjarstedt wrote in a note. Ten-year Treasury yields slipped 1.2 basis points to 4.652%, while 30-year yields fell 1.3 basis points to 5.171%. In the eurozone, German Bund yields rose 0.7 basis points to 3.229% as higher natural gas prices drive inflation concerns.

The dollar was steady, while the yen was little moved after Bank of Japan Deputy Governor Ryozo Himino vowed to remain alert to inflation risks. Markets are increasingly confident the bank will hike rates in September. Gold remained elevated at $4,654.70 a troy ounce, and Bitcoin continued to find resistance at the $80,000 mark, rising 0.6% to $79,503.28.

Nvidia's role in financing the AI buildout — including a $500 billion platform with six major financial institutions — has drawn scrutiny from investors concerned about circular financing. Kress pushed back on the criticism, saying Nvidia "gets paid twice, once on the hardware sale and again through the share of rental revenue."

With roughly 40% of the U.S. stock market concentrated in ten companies heavily invested in AI, Nvidia's fortunes extend far beyond Silicon Valley. The Jackson Hole symposium Friday and the Fed's rate path will determine whether the AI-driven rally can sustain its momentum.

This article is for informational purposes only and does not constitute investment advice.