The New Fed Chair Just Rejected the Idea That Your Raise Causes Inflation

Nvidia (NVDA) reported strong earnings, with sales more than doubling and adjusted profit exceeding estimates. Raymond James analyst Simon Leopold raised the price target to $515, implying 126% upside, citing strong demand and supply constraints. Nvidia's market cap surged by $442 billion post-earnings. Leopold's target is higher than Wall Street's consensus of $322.95. Nvidia guided for $108 billion in October-quarter sales, topping expectations.

Nvidia (NVDA) forecasts 70% revenue growth in fiscal 2028, expanding beyond chip sales to include financing and rental revenue. CME Group plans to launch futures tied to the rental cost of Nvidia's H100 and B200 GPUs, settling against Silicon Data benchmarks, with H100 at $2.68/GPU-hour and B200 at $5.66/GPU-hour. Contracts do not reserve chips but pay based on benchmark price movements.

Fed Chair Kevin Warsh delivered a hawkish message at Jackson Hole, emphasizing the need for higher interest rates to combat inflation. Nvidia reported strong Q2 earnings of $96.2B, up 106% YoY, and guided for 70% revenue growth in FY2028, causing shares to rise 8.74%. CrowdStrike and Salesforce also saw significant gains due to strong earnings reports.

Nvidia reported record revenue of $96.2B, up 106%, and net income of $59.7B. CEO Jensen Huang stated that major AI labs struggle to secure financing, so Nvidia is providing credit support, including a $105B commitment for an OpenAI data center. Nvidia also owns stakes in AI companies and has $47.9B invested in private firms. Huang announced Nvidia GPUs as a new asset class, allowing lending against them. CFO Colette Kress addressed concerns of circular financing, citing vendor financing practice

Nvidia reported Q2 2027 revenue of $96.2B, up 106%, with data center revenue at $89B, up 117%. Guidance raised to $108B, excluding China revenue. Margins held at 75%. Nvidia agreed to buy Hugging Face for $12.9B. Anthropic and OpenAI are preparing for mega-IPOs, with valuations potentially exceeding $2T and $30T TAM. Political headwinds are emerging for AI data centers due to resource demands. Both companies are deploying engineers to enterprises to drive revenue.

Nvidia (NVDA) announced a $279 billion commitment to memory chip suppliers, up from $119 billion three months prior, to support its data center growth. The spending, focused on high bandwidth memory (HBM), is aimed at securing supply for AI chip production. Nvidia's data center revenue grew 117% year-over-year to $89 billion in Q2 FY2027. The company expects 70% total revenue growth in FY2028, driven by AI chip shipments. The bulk of the spending will benefit SK Hynix and Micron Technology (MU).