Breakfast News: Nvidia Rewards Faith in AI Boom
February 26, 2026
| Wednesday's Markets |
|---|
| S&P 500 6,946 (+0.81%) |
| Nasdaq 23,152 (+1.26%) |
| Dow 49,482 (+0.63%) |
| Bitcoin $69,015 (+7.8%) |
Source: Image created by Jester AI.
1. Robust NVDA Results Reduces Nerves
Nvidia (NVDA 1.21%) swung both higher and lower in post-market trading before settling broadly flat versus the prior close, as quarterly results beat market expectation. This acted to calm investor concerns around the sustainability of the AI investment race, with market futures for the S&P 500 and Nasdaq little changed this morning to reflect that.
- "Computing demand is growing exponentially . . . our customers are racing to invest in AI compute": CEO Jensen Huang talked about how the capex boom isn't going away because just as "every single company depends on software, every software will depend on AI."
- "Small amounts of H200 products for China-based customers were approved by the U.S. Government": CFO Colette Kress revealed a key milestone in opening back up the world's largest semiconductor market. Revenue guidance for the coming quarter was upgraded, even without including any provision for Chinese income.
2. Pre-Market Hidden Gems Movers
- Salesforce (CRM +2.77%) fell 5% as CEO Marc Benioff tried to dismiss concerns of a "SaaS-pocalypse" on the earnings call. Quarterly results showed growth for Agentforce, but guidance for the full year was below expectations.
- Zoom (ZM 0.72%) dropped more than 4% as the latest earnings report showed increasing pressure on cash flow and margins, although enterprise revenue jumped, showing higher demand from corporates.
- The Trade Desk (TTD 1.14%) slumped over 15% due to revenue guidance for the coming quarter underwhelming investors as part of the quarterly results. CEO Jeff Green acknowledged softness in ad spend from some customer segments.
3. Defense Stocks Drop on Rare Earth Risks
Reuters reports U.S. aerospace companies are facing worsening rare earth shortages from suppliers, elements that play a small but vital role in defence and aerospace technology, with China being a key supplier.
- Yittrium used in coatings to keep engines from melting at high temperatures: Yittrium prices have surged 69x in the past year, with President Trump expected to push for more rare earth exports from China at his upcoming meeting with Chinese counterpart Xi.
- Pentagon reviewing defense contractors' use of AI models: Axios reports the Department of Defense reached out to Boeing (BA 4.25%) and Lockheed Martin (LMT +0.52%) to ask about the use of Anthropic, with some concerns it could be branded as a supply chain risk.
4. Next Up: Post-Market Stock Advisor Results
- Zscaler (ZS 1.86%) is expected to post revenue gains of 23.3% versus the same period last year, backing up a similar jump from last quarter, as demand for AI security services continues to increase.
- Autodesk (ADSK 0.15%) investors will be watching for signs of demand for design and construction software. Talking after the last set of results, TMF chief investment officer Andy Cross described the company as having "healthy demand, positive momentum, solid AI investments (and) normalizing growth rates for 2026."
- Rocket Lab (RKLB 3.03%) is expected to deliver a further jump in revenue, with a focus on any updates about the Neutron launch schedule. The Foundational Stock – recommended by Team Hidden Gems in Stock Advisor – is beating the S&P 500 by 50% since the August 2025 recommendation.
5. Your Take
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