Nvidia boom lifts Wall Street as investors brace for Jackson Hole rate signals - London Business News

Meta agreed to pay up to $17.1 billion to settle a child-safety lawsuit, with platform changes including daily time limits for under-18 users. Nvidia reported $96.2 billion in Q2 revenue, exceeding estimates, driven by AI and data center growth. DraftKings awarded a $30 million marketing contract to co-founder Matthew Kalish's new company, raising governance concerns.

Nvidia is reportedly acquiring AI platform Hugging Face for $12.9 billion, up from a $7 billion valuation in initial talks. Hugging Face, valued at $4.5 billion in 2023, promotes open AI models. Neither company has confirmed the deal. Nvidia, known for GPUs, seeks to diversify its business as AI demand grows.

Nvidia is reportedly nearing a $12.9 billion deal to acquire Hugging Face, an open-source AI platform. The acquisition would strengthen Nvidia's position in AI chips and open-source AI, as well as help it offload unused cloud capacity. Hugging Face, valued at $4.5 billion in 2023, has seen revenue climb to around $150 million annually. The deal is not yet finalized, and both companies declined to comment. According to Business Insider, talks could still fall apart.

Nvidia (NVDA) shares rose 7% pre-market after beating earnings estimates and forecasting 70% revenue growth by fiscal 2028. US equity futures also gained, supported by positive earnings from Nvidia and Salesforce. The White House is reportedly considering new tariffs on chips, according to Politico. Fixed income and forex markets remained quiet ahead of Fed speeches and key economic data.

Nvidia reported record $96.2B revenue, with 70% growth projected for fiscal 2028. Operating cash flow fell 52% to $24.1B due to extended payment terms. The company is financing AI infrastructure with $99B in equity investments and $108B in guarantees, raising concerns about dependency on its balance sheet. Nvidia's receivables surged to $63.1B, and it partners with firms like Apollo and BlackRock to mobilize $500B in capital.

Apple (AAPL) investors are concerned about rising memory chip prices, which are pressuring profit margins and limiting supply. Nvidia (NVDA) CFO Colette Kress noted significant price increases and uncertainty in chip availability. Apple's revenue guidance and margins were affected, with shares falling 1% on Thursday. The memory chip shortage, driven by high demand for AI infrastructure, is expected to persist into 2027, benefiting suppliers like SK Hynix (SKHY), Samsung (005930.KS), and Micron (