This Tiny AI Stock Has Crushed Micron and Nvidia This Year. Here's Why It Can Keep Going.

Nvidia reported strong quarterly results and raised its revenue forecast, with shares rising 6%. Meta agreed to a $16.7B settlement over child mental health harms. OpenAI detailed a cyber incident involving Hugging Face, which Nvidia may acquire for $12.9B. A federal judge lifted an injunction on Trump's mail-in voting order. Squishy toy sales surged to $297M in the U.S. this year.

Nvidia reported second-quarter revenue above expectations and forecasted $108 billion for the current quarter, driven by a 92% year-over-year increase in its data center business. Shares rose in premarket trading. Meta agreed to pay up to $18 billion to settle a lawsuit over teen social media addiction, while Abercrombie and Fitch shares jumped 36% after reporting a boost in operating income and net sales.

Tech stocks led Wall Street higher after Nvidia and Salesforce reported stronger-than-expected profits and raised forecasts. Nvidia rose 6% on AI-driven demand, while Salesforce jumped 14%. HP and Best Buy fell despite beating estimates, citing industry-specific pressures. Dollar General rose 5.6% on strong earnings, while Dollar Tree sank 3.3% on forecast concerns. Treasury yields remained steady at 4.66%.

Nvidia's Q2 revenue doubled to $96.22B, with EPS up 120%. Q3 guidance is $108B. CFO Colette Kress cited supply constraints. Data center revenue grew 117%, driven by AI demand. Enterprise commitments rose to $279B. Nvidia expects long-term data center leases. Forrester analyst notes AI demand but supply and competition challenges.

U.S. stock futures indicate a higher open, driven by a positive reaction to Nvidia's better-than-expected earnings and upbeat guidance. Nvidia shares surged 6.5% in pre-market trading. Traders await Fed Chair Kevin Warsh's speech at Jackson Hole for clues on interest rates. Inflation data showed a 0.2% increase in July, with a 3.7% annual rate.

Nvidia (NVDA) reported strong earnings, raising guidance but excluding China sales due to geopolitical uncertainty. China accounted for 8.2% of Q2 revenue ($7.9B). Nvidia sold limited H200 chips in China, facing US and Chinese government restrictions. The company took a $400M inventory charge. Smuggled chips are entering China, but not reflected in official sales.