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Quick overview
- Nvidia acquires Hugging Face for US$12.93 billion
- Snowflake shares soar more than 20% on strong AI-driven growth
- Broadcom expects AI chip revenue to reach US$230 billion by 2028
- HPE's revenue increased 33.7% due to surge in AI infrastructure demand
- As the situation in Iran escalates, crude oil prices hit a six-week high
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Nvidia completes its US$12.93 billion acquisition of AI development platform Hugging Face
Nvidia has completed its acquisition of Hugging Face, a leading open source artificial intelligence modeling platform. The transaction value is approximately US$12.93 billion. This represents one of Nvidia's most important corporate acquisitions to date, marking the chipmaker's strategic expansion away from hardware to AI software infrastructure and development tools.
Hugging Face has established itself as a cornerstone resource for developers around the world, providing access to machine learning models, comprehensive datasets and development frameworks. Company management confirmed that the platform will continue to maintain its open access concept after the transaction is completed.
This strategic move comes at a critical juncture as several of Nvidia's major customers are advancing proprietary chip development plans. The acquisition of Hugging Face makes Nvidia an indispensable partner in the AI development workflow, independent of the underlying hardware architecture.
Snowflake shares soar more than 20% on strong AI-driven growth
Data cloud provider Snowflake's share price surged by more than 20% after announcing better quarterly results than expected and raising its revenue forecast.
The company's second quarter product revenue was US$1.49 billion, a year-on-year increase of 37%. Overall quarterly revenue reached $1.55 billion. Management has increased its fiscal year 2027 product revenue guidance to approximately US$6.07 billion, a significant increase from its previous forecast of US$5.84 billion.
CEO Sridhar Ramaswamy said that about 50% of the company's recent growth momentum is attributed to artificial intelligence-related products. This puts Snowflake in a favorable position when compared to competitors who view AI as a disruptor of their business models.
Broadcom expects AI chip revenue to reach US$230 billion by 2028
Broadcom has released ambitious forecasts for its artificial intelligence semiconductor division, predicting AI chip revenue to approach US$115 billion by fiscal year 2027, and may then climb to US$230 billion in 2028.
AI semiconductor sales in the third quarter reached US$16.7 billion. The company reported consolidated quarterly revenue of $29.59 billion. Broadcom has become a key supplier of customized AI processors to major technology companies, providing these companies with strategic options to replace the Nvidia hardware ecosystem.
Despite the strong data, Broadcom's share price fell after issuing short-term guidance slightly below analyst consensus expectations.
HPE's revenue grew 33.7% due to surge in AI infrastructure demand
Hewlett Packard Enterprise (HPE) delivered quarterly revenue totaling $12.21 billion, a year-on-year increase of 33.7%, exceeding Wall Street forecasts. The company's adjusted earnings per share were $1.11, exceeding analyst expectations.
HPE has increased its revenue growth forecast for fiscal 2026 to the range of 34% to 37%, and expects further growth of 13% to 17% in fiscal 2027.
The company's chief financial officer said that the current market demand for AI-optimized servers and network infrastructure far exceeds the existing supply. Memory constraints and component shortages have created fulfillment challenges for pending orders.
HPE also expanded its strategic partnership with Oracle, agreeing to provide network equipment to support Oracle's artificial intelligence data center expansion initiatives.
Crude oil prices hit a six-week high as the situation in Iran escalates.
Brent crude rose about 1.7% to US$97.29 a barrel. West Texas Intermediate crude (WTI) rose about 2.2% to $93.04, pushing oil prices to their highest level in six weeks.
The price increase follows new U.S. military action against Iranian interests and heightened concerns about potential disruptions to the Strait of Hormuz, a key channel for international oil shipments.
High oil prices could amplify fuel and logistics costs in the economy. This development may lead to inflationary pressures and affect the Fed's review of monetary policy adjustments.
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