TLDR
- Nvidia is buying AI platform Hugging Face for nearly $13 billion
- Snowflake shares jumped over 20% after strong earnings and raised forecasts
- Broadcom predicts its AI chip business could hit $230 billion by 2028
- Hewlett Packard Enterprise raised its revenue forecast after a 33.7% sales surge
- Oil prices hit six-week highs as U.S.-Iran tensions escalate
Nvidia Buys Hugging Face for $12.93 Billion
Nvidia has agreed to buy Hugging Face, one of the most widely used platforms for building and sharing open-source AI models, for approximately $12.93 billion.
The deal is one of the largest acquisitions in Nvidia’s history. It shows the company moving further into the AI software and tools space, not just selling chips.
Hugging Face is used by developers around the world to access AI models, datasets and tools. The platform is expected to stay open after the deal closes.
The acquisition comes as some of Nvidia’s biggest customers are building their own custom chips. Buying Hugging Face gives Nvidia a deeper role in how developers build AI, regardless of what hardware they use.
Snowflake Surges More Than 20% on AI Demand
Snowflake shares rose more than 20% after the cloud data company reported stronger-than-expected results and lifted its revenue outlook.
Second-quarter product revenue grew 37% to $1.49 billion. Total revenue for the quarter came in at $1.55 billion.
The company now expects about $6.07 billion in product revenue for fiscal 2027, up from its earlier forecast of $5.84 billion.
CEO Sridhar Ramaswamy said AI products made up roughly half of the company’s recent growth acceleration. That puts Snowflake in a different position from software companies that see AI as a threat.
Broadcom Eyes $230 Billion AI Chip Business by 2028
Broadcom is forecasting massive growth in its AI chip business. The company expects AI chip revenue to reach around $115 billion in fiscal 2027 and potentially double to $230 billion in 2028.
Third-quarter AI chip sales already reached $16.7 billion. Overall revenue for the quarter came in at $29.59 billion.
Broadcom has become a key player in custom AI chip development for large tech companies. It gives those companies an alternative to relying solely on Nvidia hardware.
Despite the strong numbers, Broadcom shares fell after its near-term guidance came in slightly below Wall Street expectations.
HPE Revenue Jumps 33.7% as AI Server Demand Grows
Hewlett Packard Enterprise reported quarterly revenue of $12.21 billion, a 33.7% increase year over year, beating analyst forecasts. Adjusted earnings came in at $1.11 per share, also above expectations.
The company raised its fiscal 2026 revenue growth forecast to between 34% and 37%. It expects further growth of 13% to 17% in fiscal 2027.
HPE’s CFO said demand for AI servers and networking equipment is currently outpacing supply. Memory and components are creating bottlenecks in fulfilling orders.
HPE also expanded its partnership with Oracle to supply networking equipment for Oracle’s AI data center buildout.
Oil Hits Six-Week High as Iran Tensions Rise
Brent crude rose about 1.7% to $97.29 a barrel. West Texas Intermediate climbed around 2.2% to $93.04, pushing oil to six-week highs.
The move came after renewed U.S. strikes against Iran and growing concerns around the Strait of Hormuz, a key route for global oil shipments.
Higher oil prices could push up fuel and transportation costs. That could add to inflation and factor into upcoming Federal Reserve interest rate decisions.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
