NVIDIA Corporation

NVIDIA reported record revenue of $96 billion for the second quarter of fiscal 2027, more than doubling year-over-year, with data center revenue reaching $89 billion. The company guided fiscal 2028 revenue growth of approximately 70%, despite supply constraints, and expects third-quarter revenue of $108 billion, plus or minus 2%. Gross margins are expected to decline to 71-72% in the fourth quarter due to memory cost pressures, settling at 72-73% in fiscal 2028. NVIDIA returned a record $26 billion to shareholders in the quarter, including $20 billion in buybacks and $6 billion in dividends. CEO Jensen Huang highlighted strong demand across all segments, with ACIE revenue growing 138% year-over-year, and noted that the unconstrained demand is significantly higher than the 70% growth guidance.

Asian stocks closed mixed at midday on Thursday, following Nvidia, the major US AI chip maker, reporting better-than-expected earnings. However, some trading sentiment was dampened by US inflation data coming in higher than forecast. The Nikkei closed the morning down 0.15%, the Hang Seng fell 0.42%, the Shanghai Composite rose 0.60%, the KOSPI gained 1.83%, and the S&P/ASX 200 declined 0.93%. Nvidia announced its latest quarterly results (May-July 2026) with revenue reaching $96.2 billion, up 106% year-over-year, and exceeding analysts' expectations of around $92 billion. The company signaled that future sales would remain strong. Net profit surged to $59.7 billion, or $2.46 per share, up 126% from the same period last year. Excluding special items, earnings per share were $2.22, higher than the average analyst estimate of $2.09 per share. Nvidia's data center business generated revenue of $89 billion, more than doubling from the same period last year. The edge computing business brought in $7.2 billion, up 27%. Nvidia also projected revenue of $108 billion for the current quarter (August-October 2026), exceeding market expectations, which would represent an 89% increase year-over-year. Meanwhile, last night, the US Commerce Department reported that the Personal Consumption Expenditures (PCE) price index rose 3.7% in July year-over-year, higher than the 3.6% analysts had forecast. The core PCE index rose 3.3%, in line with expectations. The latest inflation figures have investors focused on Federal Reserve Chair Kevin Warsh's speech at the annual Jackson Hole meeting on Friday. The CME Group's FedWatch Tool indicates investors assign a 40% probability of a rate hike at the September Fed meeting, up from 36% previously. On Chinese economic data, industrial profits in China expanded 11.2% in July year-over-year, down from 15.1% in June, marking the slowest growth in seven months. This brought the growth rate for the first seven months to 17.6%, down from 18.7% in the first half. The Bank of Korea raised its policy rate by another 0.25% to 3%, the second consecutive hike, reaching the highest level since January 2025, to counter rising inflationary pressures.

Nvidia has agreed to acquire Hugging Face, the open-source AI model platform, for $12.9 billion, or roughly 400 billion baht, according to The Information, which cited sources familiar with the deal. Neither company has responded to requests for comment on the report. Hugging Face, headquartered in New York City, is a hub for open-source large language models, datasets, and tools for AI developers. It previously received investments from Nvidia, Salesforce, and Alphabet in 2023, totaling $235 million, which valued the company at $4.5 billion. If this deal is completed, the transaction value would be nearly three times that valuation, and higher than the $500 million offer Nvidia made last year, which valued Hugging Face at $7 billion. The acquisition comes as Nvidia forecasts revenue growth of about 70% for the next fiscal year and has $18 billion in investments in other companies through the remainder of fiscal 2027, marking a significant step in expanding its role from an AI chip maker to an ecosystem of models, software, and tools for AI developers.

Nvidia Corp. is on pace to deliver the fastest growth streak in corporate history, guiding for $108 billion in third-quarter revenue after a second quarter that crushed Wall Street's expectations across the board. If Nvidia delivers on its $108 billion guidance, the company would have grown revenue by roughly 1,730% in just four years, a pace unmatched by any company of its size in modern corporate history, according to market commentator The Kobeissi Letter. The guidance came in well above Wall Street's $103.52 billion estimate, according to Benzinga Pro. CEO Jensen Huang said in the earnings announcement that 'AI has reached its inflection point' and that 'compute is revenue,' with demand accelerating but limited by memory, power, and data center capacity. Nvidia reported second-quarter revenue of $96.22 billion, above the $92.11 billion expected by analysts, with adjusted earnings of $2.22 per share, ahead of the $2.09 forecast. Shares closed 1.59% lower on Wednesday at $209.66, then reversed course to gain 4.71% at $219.53 in extended trading on the earnings announcement.

Nvidia reported fiscal 2027 second-quarter results with revenue of $96.22 billion, beating analyst expectations of $92.17 billion, and net income more than doubled from a year ago to $53.95 billion, or $2.22 per share, compared with $24.76 billion, or $1.87 per share, in the same period last year. The data center business, the main growth driver, posted sales of $89 billion, up 117% year over year, amid strong AI demand. Chief Financial Officer Colette Kress said the company expects fiscal 2028 revenue to grow 70%, higher than the 44% analysts had forecast. Despite supply constraints, Nvidia remains a key player in the AI industry and provides financial support through guarantees and agreements to fund new data center construction. Nearly four years after OpenAI launched ChatGPT, latest-quarter revenue more than doubled from $46.7 billion in the same period a year earlier. However, investors have become more cautious as the stock has risen only 13% this year, while competition from Advanced Micro Devices, Google, and others intensifies, and memory costs have surged due to global shortages.

Kasikorn Securities Public Company Limited holds a positive view on NVIDIA Corporation's performance, assessing that the growth trend of the artificial intelligence (AI) business remains strong, as reflected in its revenue estimate for fiscal year 2028, which is expected to grow at least 70% year-over-year, with potential for higher growth if constraints on land, power, and data center building shell (Land, Power, and Shell: LPS) ease. Meanwhile, NVIDIA's stock price rose approximately 4% in pre-market trading. NVIDIA reported adjusted profit for the second quarter of fiscal year 2027 of $53.9 billion, up 109% from the same period last year, and approximately 6% above market expectations. Revenue increased 106%, beating expectations by about 4%, driven significantly by data center revenue, which grew 117% due to deliveries of the Blackwell Ultra platform. Gross profit margin (GPM) stood at 75%. NVIDIA disclosed total commitments of approximately $366 billion, comprising about $279 billion in supply agreements for raw materials and equipment, approximately $29 billion in cloud leases with Cloud Service Providers (CSPs), and an additional $56 billion in commitments to support AI Labs and customers in expanding infrastructure. Additionally, NVIDIA has guarantees of approximately $109 billion for the SB Energy data center project under the PORT-pike technology initiative, which is planned to be leased to OpenAI for 20 years. The first phase has a power capacity of 4.25 gigawatts and is expected to be completed in fiscal year 2029. The project will use approximately 1.5 million NVIDIA GPUs and has the potential to generate revenue of approximately $150-200 billion, with potential for additional capacity expansion of 3.8 gigawatts in the future. KS Research noted that NVIDIA is aware of market concerns about Circular Finance but assesses the risk as limited, as its compute platform is fungible and durable, allowing GPUs to be reallocated to other customers if a particular project does not succeed. Meanwhile, it expects that next year, about a quarter of customers may be supported through NVIDIA's balance sheet. For the third quarter of fiscal year 2027, NVIDIA guides revenue of $108 billion, up 89% year-over-year and about 4% above market expectations. However, GPM is expected to decline slightly to 74% due to the initial ramp of the Vera Rubin platform, which has higher initial costs. GPM is expected to bottom out at approximately 71-72% in the fourth quarter of fiscal year 2027 before recovering to 72-73% in fiscal year 2028, driven by price increases expected to take effect from the first quarter of fiscal year 2028. KS Research views the guidance of at least 70% revenue growth for fiscal year 2028 as a significant signal reflecting NVIDIA's confidence in AI demand trends and improved supply chain visibility, with potential for higher growth if Land, Power, and Shell constraints ease. Jensen Huang, CEO of NVIDIA, emphasized that "Compute is revenue," noting that current token usage is profitable and demand for compute is accelerating significantly. While initially only some AI Labs were rushing to invest in increasing compute capacity, now many Frontier AI Labs are accelerating expansion of compute capacity to meet continuously rising AI demand. For new technologies, including Vera Rubin, Vera CPU, and Groq 3LPX, they are currently in full production and began shipping in August 2026, with orders from all customers, and are expected to contribute approximately 20% of data center revenue in the next quarter. NVIDIA also disclosed that revenue per gigawatt for Vera Rubin is approximately $40 billion per GW, compared to about $25 billion per GW for Grace Blackwell, with potential to rise to $60-80 billion per GW in the future. Furthermore, KS Research believes that AI Clouds and IE customers will be another key growth driver, in addition to hyperscalers, which currently have a backlog of approximately $2 trillion. The development toward Recursive Self-Improvement (RSI) is likely to significantly accelerate demand for AI compute compared to the Agentic AI era. In summary, KS Research assesses that NVIDIA is transitioning from a GPU manufacturer and seller to a key player and supporter in the comprehensive AI ecosystem, covering compute, networking, data centers, and related infrastructure, reflecting strong long-term growth potential. Although the company may face near-term pressure on GPM from new technology costs, it is likely to offset these impacts through price increases.

Asian stock markets opened mostly higher this morning, buoyed by Nvidia, the major U.S. AI chip maker, which reported better-than-expected earnings and forecast continued strong revenue growth. Nvidia shares surged over 4%. The Nikkei index opened at 66,775.78 points, up 513.62 points or 0.78%. The Hang Seng Index opened at 25,774.87 points, up 121.90 points or 0.48%. The Shanghai Composite Index opened at 3,911.89 points, down 0.63 points or 0.02%. The KOSPI surged 2.48%, while the S&P/ASX 200 slipped 0.56%. Nvidia announced its latest quarterly results (May-July 2026) with revenue reaching $96.2 billion, up 106% year-over-year, and exceeding analysts' expectations of about $92 billion. Net income surged to $59.7 billion, or $2.46 per share, up 126% from the same period last year. Excluding special items, earnings per share were $2.22, above the analysts' estimate of $2.09 per share. Nvidia's data center business generated revenue of $89 billion, more than doubling from a year ago. The edge computing business brought in $7.2 billion, up 27%. Nvidia also projected current-quarter (August-October 2026) revenue of $108 billion, above market expectations, which would represent an 89% year-over-year increase. The company expects revenue in the next fiscal year starting January 2027 to grow by about 70%, citing supply chain constraints as a limiting factor on sales, not weakening demand. Investors are also watching the Federal Reserve's annual symposium in Jackson Hole, Wyoming, on August 27-29. Fed Chair Kevin Warsh will deliver a speech on Friday, August 28, at 10:00 a.m. U.S. time, which is 9:00 p.m. Thailand time.

Business Insider reported on the 26th, citing sources familiar with the matter, that U.S. semiconductor giant Nvidia is in serious negotiations to acquire Hugging Face, an artificial intelligence platform. Hugging Face is said to be valued at over $13 billion. Reuters could not immediately verify the report.

Severe flash floods along the Nepal-China border have killed at least 100 people and left hundreds missing, with 384 travelers reported missing from the area. President Xi Jinping has called for a full-scale rescue effort, while Nepalese security forces have already rescued over 250 people. Derek Grossman, a political science professor at the University of Southern California, said that a reduced U.S. role in Asia would force regional allies to take on more responsibility for their own defense. His comments came after President Donald Trump reiterated demands for a significant reduction in joint military exercises with South Korea. Meanwhile, Qatar's prime minister will visit Tehran on Thursday to revive diplomatic talks after the U.S.-Iran ceasefire agreement stalled. The U.S. has announced it will increase economic pressure by sanctioning countries that trade with Iran. Oil prices closed lower, with WTI down 0.16% to $82.23 per barrel and Brent down 0.84% to $87.84 per barrel. Spot gold fell 1.3% to $4,595.93 per ounce after U.S. inflation data came in line with expectations. Nvidia reported better-than-expected fiscal second-quarter 2027 results, with earnings per share of $2.22, above the expected $2.10, and revenue of $96.22 billion, above the expected $92.17 billion, sending shares up 4% after market close. Meta Platforms has agreed to pay up to $18 billion and implement strict usage restrictions for youth on Facebook and Instagram to settle a legal dispute brought by four states—California, Colorado, Kentucky, and New Jersey—which alleged the company's apps harm children.

Brokers expect the Thai stock market to have a chance to rise to the resistance level of 1,620 points today, supported by tech stocks, especially DELTA and HANA, after NVIDIA reported better-than-expected Q2 FY70 results. Profit expanded 126% year-on-year, revenue increased 106%, and gross margin stood at 75%, 6% higher than Bloomberg's forecast. This drove NVIDIA's stock price up 4.6% in after-hours trading, and this morning the KOSPI index rose 2.5%. On the domestic front, the Monetary Policy Committee kept interest rates unchanged but assessed that the Thai economy is supported by AI, although growth remains low and uneven. They believe that looser interest rates will help revive the economy. Analysts from Pai Securities stated that SET today has a trading range of 1,590 – 1,620 points, recommending investment in tech, tourism, retail, banking, power plant, and industrial estate stocks.

U.S. semiconductor giant Nvidia reported on the 26th its financial results for the May-July period of 2026, with revenue of approximately $96.221 billion (about 15.3 trillion yen), roughly 2.1 times the same period last year, and net profit of approximately $59.688 billion, about 2.3 times, marking a record high for the May-July period. Additionally, the company projected an 89% increase in revenue for the next quarter.

Tokyo stocks are expected to be firm on the 27th, with the predicted range between 66,500 and 67,000 yen. Although U.S. stocks fell the previous day, Nvidia's May-July quarter results showed revenue of $96.2 billion, up 2.1 times year-on-year, exceeding market expectations, and rose in after-hours trading. This serves as a catalyst for semiconductor-related stocks. The yen is trading narrowly at the upper 159 yen level against the dollar and the mid-185 yen level against the euro. Chicago Nikkei futures were 440 yen lower at 65,970 yen compared to the Osaka settlement price.

Nvidia delivered another blockbuster quarter, beating Wall Street's expectations as demand for AI infrastructure continues to surge. Amid growing scrutiny over Nvidia's investments in AI companies and data-center projects, CFO Colette Kress pushed back on the characterization of these as "circular financing," explaining that the chipmaker views its partnerships and investments as strategic opportunities. Kress said Nvidia is going through a major computing platform shift and that the companies it invests in are "once in a generation" with proven technology leadership and skyrocketing customer traction. She expects these investments to yield excellent returns measured against demand strength, business creation, ecosystem building, and equity returns, while noting that Nvidia's compute platform is fungible and can be redeployed to support other customers, limiting risk.

NVIDIA's fiscal second-quarter revenue reached $96.2 billion, a 106% year-over-year increase, with the Data Center segment contributing $89.0 billion, or 92% of total revenue. For the first time, the company disclosed its ACIE segment—covering AI Cloud, Industrial, Enterprise, and Sovereign AI—which generated approximately $40.0 billion, accounting for 45% of Data Center revenue and growing 138% year-over-year. Sovereign AI alone tripled year-over-year, signaling broader demand beyond hyperscalers. NVIDIA also announced $500 billion in compute financing memorandums of understanding with major financial institutions including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. The Vera Rubin platform is now in full production, with racks operational at CoreWeave, Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, and Nebius. For the third quarter, NVIDIA guides revenue of $108 billion, plus or minus 2%, excluding China Data Center compute revenue, with gross margins projected at 74.0%, plus or minus 50 basis points, down from 75.0% in the second quarter. The company returned approximately $26.0 billion to shareholders in the quarter and has $99.0 billion remaining under its repurchase authorization.

NVIDIA reported fiscal second-quarter earnings of $2.22 per share on revenues of $96.2 billion, surpassing Zacks estimates of $2.09 per share and $91.85 billion, marking a 120% year-over-year increase in earnings and 106% in revenue. The Data Center segment alone generated $89.00 billion in revenue, up 117% from a year ago, and the company expects to exceed $100 billion in revenue next quarter for the first time, with guidance of $108 billion plus or minus 2%. In other earnings news, Salesforce posted a big beat with $5.90 per share versus the $3.27 consensus, driven by its partnership with Anthropic, and returned $27.5 billion to shareholders. CrowdStrike shares rose 9.7% after reporting record annual recurring revenue of $333 million, up 51% year over year, and beat on both earnings and revenue. Hewlett-Packard also beat estimates with $0.83 per share versus $0.74 expected, helped by an 11-cent gain from tariff refunds, and raised guidance, while Urban Outfitters met earnings expectations of $1.72 per share on record revenues of $1.66 billion, up 10.4% year over year.

Zacks Investment Research reports that S&P 500 earnings for 2026 Q3 are expected to rise 22.6% year-over-year on 10.9% higher revenues, with 14 of 16 sectors projected to see positive growth and five sectors achieving double-digit gains. This marks the most broad-based earnings growth in recent times, with positive revisions continuing for a year. Alphabet, Micron, and Nvidia are major contributors to the Tech sector's growth; excluding them, Tech earnings would grow 18.9% versus 39.3% otherwise. The favorable revisions trend also extends to Q4 estimates, with similar sectors seeing upward adjustments.

Nvidia's balance sheet is increasingly acting as the central bank of the AI boom, with the chipmaker's equity holdings surging to $95.6 billion and its broader investments reaching roughly $99 billion. The company is extending payment terms to customers, with accounts receivable jumping to $63.1 billion and average collection time rising to 60 days from 45. Nvidia has also committed $36 billion in agreements with AI cloud providers and disclosed up to $108.5 billion in guarantees, nearly all tied to the SB Energy data center buildout for OpenAI. Additionally, Nvidia is seeking to channel over $500 billion from outside investors into AI infrastructure, while returning $25.8 billion to shareholders through buybacks and dividends, exceeding its free cash flow of $21.3 billion.

Amazon.com Inc. will add an additional 2 million Nvidia Corp. graphics processing units to its data center fleet in the next two years, a sign that the company remains committed to the AI hardware leader's products despite its own competitive chipmaking efforts. The two companies said on Wednesday that Amazon would deploy some 2 million of Nvidia's high-end chips, which are designed to train and run artificial intelligence models, in 2027 and 2028. That's in addition to the 1 million Nvidia chips Amazon in March said that it would be installing in Amazon Web Services data centers, beginning this year. The chips in the latest deal include Nvidia Blackwell Ultra, Rubin and Rubin Ultra GPUs. Those products will likely carry a list price of at least tens of thousands of dollars a unit, though big customers can get discounts. Amazon and Nvidia didn't announce financial terms of their latest deal.

Amazon Web Services and NVIDIA announced a major expansion of their strategic collaboration, planning to deploy 2 million additional NVIDIA GPUs across AWS's global infrastructure in 2027-2028. This new commitment builds on earlier plans announced at NVIDIA GTC 2026 to add more than 1 million GPUs starting in 2026, reflecting surging demand for AI infrastructure. The expanded partnership also includes bringing NVIDIA Vera CPU-based infrastructure to AWS, extending NVIDIA NVLink Fusion with custom high-bandwidth memory, and building AI factories for the U.S. government with 100,000 GPUs for federal and national-security workloads. Additionally, AWS will integrate the NVIDIA platform with its Nitro System and Elastic Fabric Adapter, support NVIDIA Nemotron open models on Amazon Bedrock and SageMaker, and accelerate data processing and robotics workloads. AWS CEO Matt Garman and NVIDIA CEO Jensen Huang both emphasized the unprecedented scale and pace of AI adoption, with Huang noting that demand is running ahead of every forecast.

U.S. chip giant Nvidia on Thursday gave a third-quarter (August-October) revenue forecast that beat market expectations. However, shares fell 1.2% in after-hours trading on concerns about whether it can maintain its dominant position in the artificial intelligence (AI) chip market over the long term. The revenue forecast was $10.8 billion (plus or minus 2%), above LSEG analysts' estimate of $10.419 billion. Sales of data center chips to China are not included in the forecast.

NVIDIA reported second-quarter fiscal 2027 revenue of $96.2 billion, up 18% from the previous quarter and 106% from a year ago, with data center revenue of $89.0 billion, up 117% year over year. GAAP and non-GAAP gross margins were both 75.0%, and GAAP and non-GAAP earnings per diluted share were $2.46 and $2.22, respectively. The company returned approximately $26.0 billion to shareholders through share repurchases and dividends, and announced a quarterly cash dividend of $0.25 per share payable on October 1, 2026. For the third quarter, NVIDIA expects revenue of $108.0 billion, plus or minus 2%, and gross margins of 74.0%, plus or minus 50 basis points. CEO Jensen Huang said AI has reached its inflection point and demand is accelerating, with the Vera Rubin platform now in full production.

US artificial intelligence developer Anthropic is set to pay $45 billion to lease AI cloud computing capacity from UK-based AI cloud company Nscale's data center campus in West Virginia, according to sources familiar with the agreement. To meet Anthropic's demand, Nscale will deploy Nvidia's new chip, "Vera Rubin." The contract spans six years and corresponds to approximately 460 megawatts of power supply capacity. As Anthropic prepares for a potential large-scale initial public offering (IPO), it is expanding its computing capacity to meet growing demand for its AI coding tool "Claude Code," and this agreement is part of that effort. Anthropic declined to comment. The deal was first reported by Bloomberg News.

Nutanix reported fourth quarter and fiscal 2026 financial results, with annual recurring revenue growing 16% year-over-year to $2.55 billion and strong free cash flow generation. For the fourth quarter, revenue rose 16% to $757.1 million, GAAP operating income was $70.0 million, and non-GAAP operating income was $198.0 million, with free cash flow of $277.6 million. For the full fiscal year, revenue increased 12% to $2.85 billion, GAAP operating income was $274.0 million, non-GAAP operating income was $675.4 million, and free cash flow reached $840.7 million. The company added over 3,000 new customers during the year and signed new or enhanced agreements with AMD, Lenovo, NetApp, and NVIDIA. Looking ahead, Nutanix guides first quarter fiscal 2027 revenue between $755 million and $765 million, and fiscal 2027 revenue between $3.180 billion and $3.230 billion, with non-GAAP operating margin of 24% to 25% and free cash flow of $850 million to $950 million.

Nvidia has informed some of its largest customers that prices for servers containing its AI chips will increase by more than 15%, according to a Bloomberg News report from August 22. The hikes, which take effect on systems shipped early next year, will include those with the flagship Vera Rubin and Grace Blackwell chips. The increases are driven by soaring memory costs, not Nvidia's own manufacturing expenses, and server manufacturers supplying Microsoft, Oracle, and Google have already begun notifying customers. The news comes just days before Nvidia's earnings release on August 26, where investors will watch for confirmation and margin impact. While the hikes could signal pricing power and strong demand, they may also push buyers toward alternatives, though major customers like Amazon, Microsoft, Meta, and Google remain dependent on Nvidia for their data center build-out.

Cisco Systems has broken its biggest hardware rule by selling AI server hardware directly through a new partnership with Super Micro Computer, pulling the company deeper into a business it traditionally left to others. Announced Tuesday, Cisco is expanding its Secure AI Factory with Nvidia architecture to include Supermicro's liquid and air cooled server systems, which will be sold and validated as part of Cisco's own AI infrastructure portfolio. The combined stack becomes compliant with Nvidia's Cloud Partner program, a credential neoclouds and sovereign cloud operators look for before signing large contracts. Cisco President and Chief Product Officer Jeetu Patel said the industry is at the state of "one of the largest datacenter buildouts in history." Cisco shares rose roughly 1% Tuesday, while Supermicro jumped about 9%. Twenty-six analysts polled by S&P Global rate Cisco a consensus Buy with an average price target near $133, and Morgan Stanley reiterated an Overweight rating and a $135 price target. Supermicro's fiscal fourth quarter revenue reached $11.1 billion, up from $5.8 billion a year earlier, with gross margin recovering to 17.5% from 9.5%, and the company guided fiscal 2027 revenue to a range of $65 billion to $72 billion. Cisco disclosed no committed order volume or pricing, and Supermicro's systems become available through Cisco's channel starting in October 2026.

Bank of America Securities analyst Vivek Arya said on CNBC that Nvidia could generate $1 billion in free cash flow every weekday by this time next year, a milestone no other company has achieved. Arya argued that Nvidia trades at just 0.3 times earnings growth, making it 30% to 50% undervalued, with a consensus analyst target near $305. He noted that Nvidia has fallen 1% to 5% after each of its last four earnings beats, shifting investor focus to balance sheet disclosures over EPS. In Q1 FY27, Nvidia reported $50.34 billion in operating cash flow, $48.55 billion in free cash flow, and $119 billion in total supply-related commitments, while authorizing an additional $80 billion share repurchase and raising its quarterly dividend to $0.25 per share. Arya highlighted strong demand from large customers, supply access, and the upcoming Vera Rubin product cycle as key drivers.

Cisco Systems is expanding its Secure AI Factory with NVIDIA, embedding security directly into the AI infrastructure stack to counter rivals Palo Alto Networks and Fortinet. The architecture combines Cisco networking, NVIDIA AI infrastructure, and Supermicro rack-scale compute, with security built from silicon through applications and AI agents. Cisco's security revenues rose 14% year over year to $2.23 billion in the fourth quarter of fiscal 2026, and firewall orders grew over 30%. The company added more than 6,400 net new customers for products like Secure Access, XDR, Hypershield, and AI Defense since launch. Fortinet's SASE Firewall business grew 34% to over $2 billion in the second quarter of 2026, while Palo Alto's Prisma AIRS surpassed 300 customers in the third quarter of fiscal 2026. Cisco shares are up 44.2% year to date, and the Zacks Consensus Estimate for fiscal 2027 earnings is $5.11 per share, up 7% over the past 30 days.

SK Hynix's new co-packaged-optics roadmap, published in Nature Electronics, proposes optical links connecting AI processors directly to pooled memory resources, expanding the potential market for Coherent, which competes across every CPO layer. Coherent's Data Center revenue rose 59% year over year to $1.62 billion in its fiscal fourth quarter, and Nvidia's $2 billion investment validates its manufacturing as strategically critical. The company has secured very-high-volume, multiyear orders from a leading AI data center customer and demonstrated a 6.4-terabit silicon-photonics CPO platform. Coherent estimates the CPO serviceable available market could exceed $15 billion by 2030, and SK Hynix's architecture could increase that by adding optical interfaces around memory. While the roadmap is not yet a commercial product, it signals that optics will move closer to processors and memory, positioning Coherent for a broader architectural shift in AI connectivity.

Amkor Technology reported second-quarter 2026 earnings of 70 cents per share, beating the Zacks Consensus Estimate by 48.94%, with net sales of $1.89 billion, up 25.58% year over year. The company saw record revenues in Computing and Automotive and Industrial end markets, and advanced products totaled $1.557 billion, up 26.79% year over year. For the third quarter, Amkor expects net sales of $1.95-$2.05 billion and gross margin of 18.5-19.5%, with net income between $180 million and $205 million. Management highlighted strategic partnerships with TSMC and NVIDIA to support long-term advanced packaging growth. Shares have risen 6.6% since the earnings report, and the consensus estimate has shifted upward by 28.11%.