The Nasdaq Composite rose on Thursday, August 27, after Nvidia’s revenue forecast lifted chip stocks and other technology shares. The index gains 1.1% in morning trading, while the S&P 500 advances 0.5% and the Dow trades near unchanged.

However, gains concentrate in technology, with several major stocks falling. Investors also await Federal Reserve Chair Kevin Warsh’s Friday speech at Jackson Hole.

Nvidia Forecast Lifts Chip Stocks

Nvidia shares gain about 8% after the company beats quarterly revenue and profit expectations. It forecasts 70% revenue growth for fiscal 2028, exceeding the 44% increase analysts surveyed by LSEG expected.

The company usually provides quarterly guidance, making its annual projection unusual. Fiscal 2028 ends in January 2028. Meanwhile, second-quarter revenue reached $96.2 billion, more than double the previous year’s total.

Data center revenue rises 117% to $89 billion. Nvidia also forecasts third-quarter revenue of $108 billion, plus or minus 2%. Nevertheless, the chipmaker warns that shortages of memory components could restrict its expansion.

“The market rewarded the demand outlook. Nvidia has made quarterly beats routine,” says investment manager Matthew Tuttle.

Other semiconductor shares also advanced alongside Nvidia. Broadcom gained around 2%, Arm rose nearly 5%, and Intel rose more than 1%. At least 16 brokerages raised Nvidia price targets following the results, according to LSEG data.

CoreWeave and Nebius, two cloud computing companies backed by Nvidia, also gained between 2% and 4.5%.

ALSO READ: NVIDIA Posts Record $96.2B Revenue as AI Chip Demand Soars

Software and Cybersecurity Stocks Rally

Salesforce climbs around 13% after second-quarter revenue exceeds analyst estimates. The company raises its annual revenue and profit forecasts and introduces a plug-in using Anthropic’s Claude models.

Meanwhile, Adobe and Autodesk each advance around 5%. Cybersecurity stocks post larger gains after companies report stronger results and raise their outlooks.

Okta jumped more than 20%, while CrowdStrike gained around 17%. Both companies reported stronger demand linked to AI tools that carry out tasks. Palo Alto Networks also rose about 11%.

The SPDR S&P Software & Services ETF, known as XSW, reached an intraday record. At 11:28 a.m. EDT, it trades at $209.37, up 4.75%. A close above $205.24 would establish a closing record. The fund also heads toward a fifth straight weekly gain. It last recorded that winning streak in September 2025.

Additionally, the Global X Cybersecurity ETF rose around 9%. The fund approached its strongest session since April 9, 2025, when it gained 9.7%.

Investors Await Warsh’s Jackson Hole Speech

Outside technology, Apple, Merck and Visa each fell more than 1%. Earlier market figures show declining stocks outnumbering gainers on the New York Stock Exchange. Decliners lead by 1.31 to one, while Nasdaq gainers outnumber declining shares by 1.32 to one.

Long-term bond yields trade near recent peaks amid concerns about government borrowing, tariffs and energy prices. Oil prices move between gains and losses while investors follow diplomatic efforts concerning the Strait of Hormuz.

Warsh will deliver his first Jackson Hole address as Fed chair on Friday. Investors seek details on the central bank’s response to inflation and its approach to interest rates.

Wednesday’s personal consumption expenditures report comes in slightly hotter than expected. Meanwhile, initial unemployment claims fall to 203,000 for the week ended August 22, below economists’ forecast of 208,000.

Cleveland Fed President Beth Hammack calls for higher rates despite slower monthly price increases. The Fed targets annual inflation of 2%.

“I believe now is the time to act,” Hammack says. She argues that current financial conditions do not show sufficient monetary restraint.