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NVIDIA Reports Strong Earnings and Acquires Hugging Face

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.NVIDIA RESULTS:Nvidiais in the spotlight after reporting a strong earnings beat and an upbeat outlook. The company not only topped analyst expectations but also projected revenue growth of 70% in fiscal 2028, far above the 44% anticipated by LSEG‑surveyed analysts. Its Q2 revenue more than doubled, reinforcing the momentum behind its AI‑driven expansion.HUGGING FACE DEAL:Nvidia has agreed to acquire open-source AI platform Hugging Face for $12.9B, expanding its AI ecosystem and access to a leading repository of open-source models, The Information's Amir Efrati, Valida Pau, and Phoebe Liu, citing a person familiar with the matter.NEW SEMICONDUCTOR TARIFFS:The Trump administration is considering broad new semiconductor tariffs that could extend to chip-containing products such as laptops and data-center servers, potentially raising AI infrastructure costs while linking tariff relief to U.S. manufacturing investment, Politico's Ari Hawkins and Gabby Miller. The administration is also mulling a phase-in period for the new tariffs, people familiar with the matter say. Publicly traded companies in the space include AMD, Intel, Marvell, Microchip, Micron, Nvidia, Qualcommand Texas Instruments.ANTHROPIC'S AI:Metahas quietly become one of Anthropic's largest customers, potentially spending up to $10B annually on its AI models despite publicly criticizing the company, highlighting the increasingly intertwined and competitive nature of the AI ecosystem, The New York Times' Eli Tan and Kalley Huang.CHIP SMUGGLING:The U.S. government is probing Apex Logistics for its potential role in the smuggling of Nvidia chips to China, Kari Soo Lindberg and Mackenzie Hawkins of Bloomberg, citing people familiar with the matter. Authorities are investigation into whether Apex transported AI systems made by Super Micro Computer, the sources added.AI REGULATOR:The Trump administration's proposed AI self-regulatory body appears to be stalling, suggesting uncertainty around the administration's approach to AI oversight, The Information's Leo Schwartz. A formal framework could still emerge, but the delay reinforces the broader regulatory vacuum as states continue pursuing their own AI rules, according to the report.AI RESPONSIBILITY:Googleis moving its team dealing with identifying risks and societal impact of AI out of Google DeepMind, the research lab developing its most advanced AI models, Erin Woo of The Wall Street Journal, citing an internal email viewed by the Journal. The change has prompted some members to raise concerns their work may be negatively affected, two DeepMind employees told the Journal. Instead, the 90-person "AI responsibility" unit will join Google's global affairs organization.CYBER DEFENSE:In antitled "A call for collective action on cyber defense" shared on X, the President and co-founder of OpenAI Greg Brockman writes that, "We have a limited window to strengthen cyber defenses. In the coming months, AI-enabled cyber attacks will become far more widespread and sophisticated as models around the world become increasingly capable. The companies and public services our communities depend on - from hospitals to water treatment plants to the infrastructure that powers the internet - are at risk. Today's AI advances are already giving defenders new ways to fix weaknesses that have accumulated for years. If we act decisively, we can use the defenders' window to make our digital world much more secure. We propose the following principles for a collective response: Recognize that status quo security won't be enough... Empower more defenders with cyber-capable AI... Mobilize a collective response." He further states, "We can make the digital infrastructure we all depend on more secure. We call on leaders across industry and government to bring the full weight of their technology, resources, and expertise to this effort. Put cyber-capable AI in the hands of defenders, starting with the teams protecting essential services. Fix the most dangerous weaknesses, verify the fixes, and share what works so others can build on it. Together, we can turn today's AI advances into lasting improvements in security that benefit everyone. Let's put them to work."AI BUSINESS:Microsoftstands out among other tech giants for its lack of transparency during its financial reporting, Jonathan Weil of The Wall Street Journal. In Microsoft's latest annual report, the company said "Azure and other cloud services revenue increased 41%" during the year, but gave no dollar amount for that revenue or for the year earlier figure. Instead, Azure is buried within the "intelligent Cloud" segment, which includes legacy software and hides the margins, costs, and capital intensity of its AI-build out.

Major Averages Slightly Higher, Chip Stocks Benefit from Nvidia Earnings

The major averages were fractionally higher near noon, with chip stocks moving higher ahead of Nvidia's upcoming earnings print as well as key inflation data due Wednesday. Meanwhile, the U.S. has begun imposing tougher sanctions on Iran and is threatening countries that continue trading with Tehran, but crude prices have eased. WTI crude is hovering around $82 a barrel, continuing a downward trend that began late last week. In other geopolitical news, the North American trade war heated up as Canada is matching Trump's weekend tariff escalation with a sweeping package of counter tariffs that directly targets U.S. steel, aluminum and downstream manufacturing.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Dick's Sportingreportedand cut its FY26 earnings and revenue guidanceUnited Airlinesaddedacross Europe and AsiaMcKessonPrecision Medicine Group for roughly $2.25BBoeinghas been awarded afor the F-15 Eagle CrestTeslahas increased U.S. Cybertruck prices,2. WALL STREET CALLS:AMDto Strong Buy from Outperform at Raymond JamesLoop CapitalFive Belowwith bullish view priced inDynatraceto Overweight at Morgan StanleyKlarnato Peer Perform at Wolfe ResearchShift4 Paymentsto Overweight at Wells Fargo3. AROUND THE WEB:Ukrainian officials say Russia has used readily available NvidiaJetson Orin modules in fully autonomous AI-guided drones, highlighting how civilian Nvidia hardware can reach military applications through resale markets despite the company not selling directly in Russia, NY Times reportsSoftBankis planning a record Y1T, or $6.3B, retail bond sale to raise funds for its investment commitments to OpenAI, Bloomberg saysTaiwan prosecutors have indicted nine people, including employees from Nvidiaand Super Micro, for their involvement in the illegal export of AI servers to China, Reuters reportsShellhas attracted interest from ExxonMobiland LyondellBasellfor its underperforming U.S. chemicals assets, including the $14B Monaca complex, as it seeks to streamline its portfolio, FT saysJack Ma, the founder of Alibaba, has bought more than HK$600M worth of the company's Hong Kong-listed shares on consecutive days, SCMP reports4. MOVERS:Richtech Roboticsincreases after announcing aMadison Airgains after announcing aModernahigher after Wolfe Researchthe stock to Peer PerformGorilla Technologyfalls in New York afterand providing guidance for FY27Target) lower afterrelated to its Halloween costume following backlash5. EARNINGS/GUIDANCE:Vipshopand provided guidance for Q3Scotiabank, with EPS and revenue beating consensusCiti Trendsand raised its outlook for FY26SelectQuote, with CEO Tim Danker commenting, "It was a highly successful 4th quarter and full-year fiscal 2026 for our business"Marzetti, with EPS beating consensusINDEXES:Near midday, the Dow was up 105.54, or 0.20%, to 53,522.70, the Nasdaq was up 155.86, or 0.60%, to 26,136.05, and the S&P 500 was up 21.12, or 0.28%, to 7,673.98.