Nvidia-Powered Tech Rally Lifted Broader Benchmark Indexes

Barry Adams
27 Aug, 2026
New York City

U.S. stocks edged higher in early trading, and investors reviewed the latest batch of earnings from key technology companies. 

The S&P 500 Index edged up 0.4%, and the tech-heavy Nasdaq Composite advanced 0.8% following stronger-than-expected earnings from Nvidia and Salesforce. 

Nvidia Corp., the company at the center of the latest rush to expand and enhance investment in artificial intelligence infrastructure, reported sold revenue and earnings growth. In addition, the company estimated revenue growth of 70% in the fiscal year ending in January 2028. 

CEO Jensen Huang said that the "demand is much greater than 70%"; however, the company is facing capacity restrictions. 

Nvidia's strong guidance fueled another upward surge in chip stocks, and Micron, Marvell Technology, and SanDisk surged between 4% and 7%. 

Cloud computing services providers closely tied to Nvidia—Coreweave and Nebius—soared 6%. 

The West Texas Intermediate crude oil traded around $82 a barrel after three consecutive sessions of losses, as investors weighed improving supply prospects through the Strait of Hormuz against growing disruptions to Russian energy exports. 

Ongoing Ukrainian strikes on Russian refineries and ports are disrupting the country's energy infrastructure and could curtail its ability to export crude and refined products. 

 

U.S. Movers 

Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion. 

The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta. 

Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.  

The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago. 

Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago. 

Nvidia's portfolio of stakes in AI companies boosted net profit by $7.8 billion.

Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.  

Salesforce Inc. soared 11.6% to $229.50 after the company's guidance surpassed market expectations. 

“AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion," said Marc Benioff, Chairman and CEO, Salesforce.

Revenue in the fiscal second quarter ending in July increased 11% to $11.3 billion from $10.2 billion, net income jumped to $3.5 billion from $1.9 billion, and diluted earnings per share advanced to $4.29 from $1.96. 

Operating cash flow in the quarter soared 71% to $1.3 billion, and free cash flow advanced 81% to $1.1 billion. 

The company revised its full-year fiscal 2027 revenue range to between $46.1 billion and $46.4 billion, reflecting an annual increase of 11% to 12%, and retained its full-year growth estimates of operating and free cash flows to between 4% and 5%. 

The company's quarterly earnings report suggested $2.6 billion in gains on strategic investments from AI startup Anthropic.