By William Collins, consultant in stock markets – Eurasia Business News, August 27, 2026. Article no 3127
U.S. stocks advanced on Thursday, August 27, as Nvidia’s stronger-than-expected earnings and upbeat long-term forecast reassured investors that the artificial-intelligence boom still has room to expand. The Nasdaq Composite led the rally, while shares connected to AI infrastructure, enterprise software and data-centre investment also moved higher.
The Dow Jones Industrial Average gained 0.4%, the S&P 500 rose 0.8% and the Nasdaq Composite jumped 1.5%. Nvidia shares surged approximately 9.4%, putting the stock on track for one of its strongest daily performances since April 2025. Technology stocks led the market, although consumer staples remained among the weakest-performing sectors.
Nvidia Earnings Beat Expectations
Nvidia reported fiscal second-quarter revenue of $96.22 billion, an increase of 106% from the same period a year earlier and 18% from the previous quarter. The result exceeded the Wall Street consensus estimate of approximately $92.17 billion. Adjusted earnings per share reached $2.22, compared with an expected $2.10.
The company also delivered stronger-than-expected guidance for the current quarter. Nvidia expects fiscal third-quarter revenue of approximately $108 billion, plus or minus 2%. That forecast was above the consensus estimate of roughly $104 billion and suggested that demand for advanced computing remains robust.
For investors, the results were important because Nvidia’s business provides a real-time measure of spending on artificial intelligence. The company supplies graphics processing units, networking equipment and complete data-centre systems used by cloud providers, AI laboratories, technology companies and enterprises.
70% Revenue Growth Forecast
The biggest surprise came from Nvidia’s preliminary outlook for fiscal 2028. Chief Financial Officer Colette Kress said the company expects revenue to grow by approximately 70% in that fiscal year. Analysts had previously expected growth closer to 44% to 45%.
The projection helped ease concerns that the AI investment boom might be nearing a peak. Instead, Nvidia indicated that customer demand remains significantly higher than the company’s ability to supply products. Chief Executive Jensen Huang said the 70% forecast is constrained by production capacity rather than a lack of demand.
The forecast implies that Nvidia expects to generate roughly $690 billion to $700 billion in revenue during fiscal 2028, substantially above earlier analyst estimates of approximately $570 billion.
That gap between projected demand and available supply is central to the AI investment story. Nvidia must continue securing advanced manufacturing capacity, high-bandwidth memory, networking components and energy-intensive data-centre resources to meet orders.
AI Stocks Rally Worldwide
Nvidia’s earnings supported other companies involved in the AI buildout. Semiconductor manufacturers, networking suppliers, data-centre operators and power-management companies all benefited from renewed confidence in future technology spending.
CrowdStrike and Salesforce also advanced after reporting strong results linked to AI demand. Their performance suggested that artificial intelligence is becoming more than an infrastructure investment. Businesses are increasingly paying for AI-powered cybersecurity, customer-service tools, productivity software and data analytics.
The rally extended beyond the United States. Asian semiconductor stocks rose in early trading, with South Korea’s Kospi gaining 2.29% and Japan’s Nikkei 225 adding 0.34%. Nvidia’s guidance encouraged investors to view AI demand as a global capital-spending cycle rather than a short-term U.S. technology trend.
Treasury Yields Tick Higher
The technology rally occurred despite a modest increase in Treasury yields. The 2-year Treasury yield rose 1 basis point to 4.21%, while the 10-year yield also gained 1 basis point to 4.66%. The 30-year yield increased 1 basis point to 5.18%.
Higher long-term yields can pressure high-growth technology shares because they reduce the present value of future earnings. Nvidia’s results were strong enough to overcome that concern, but the bond market remains an important risk for AI stocks.
Investors continue to monitor federal borrowing, inflation and the sustainability of debt-financed technology spending. If bond yields rise sharply, even companies with strong earnings growth may face valuation pressure.
Oil Prices Rise as Hormuz Diplomacy Continues
Oil prices moved higher as investors followed diplomatic efforts to ease tensions around the Strait of Hormuz. Brent crude futures rose $1.08 to $88.92 per barrel, while West Texas Intermediate gained modestly to approximately $82.42.
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The energy market remains sensitive to developments involving Iran and the strategic waterway. A diplomatic breakthrough could reduce the geopolitical premium in crude prices, while renewed conflict could push oil higher and intensify inflation concerns.
Gold Price at $ 4,603
Gold traded near $4,603.39 per ounce at 2:39 p.m. New York time on August 27, up $10.50, or 0.23%, according to the attached market data. A separate quote showed a bid of $4,603.20 and an ask of $4,605.20, with the day’s range between $4,565.50 and $4,643.70.
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Gold gained 1.80% over seven days, 12.95% over 30 days and 35.70% over one year. Despite a decline of 12.78% over six months, the precious metal remained supported by fiscal uncertainty, geopolitical risks and demand for alternative stores of value.
Market Outlook
Nvidia’s results provided a powerful boost to investor confidence, but the sustainability of the rally will depend on whether other companies can convert AI spending into measurable revenue and profits. Nvidia’s 70% fiscal 2028 growth outlook indicates that the industry remains supply-constrained, yet investors will eventually demand evidence that customers can earn attractive returns on massive AI investments.
For now, the earnings report has pushed concerns about an immediate AI slowdown into the background. The Nasdaq’s advance shows that strong corporate guidance can outweigh higher bond yields—at least while Nvidia continues to deliver exceptional growth.
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© Copyright 2026 – Eurasia Business News. Article no. 3127
Eurasia Business News 