Nasdaq futures outperform after Nvidia puts AI fears to rest

Nasdaq-100 futures rallied after Nvidia's impressive earnings forecast on Thursday, reigniting investor enthusiasm in the AI sector and spurring technology stocks higher. Nvidia's stock surged 7.2% in early trading after reporting strong demand for AI computing, despite a warning of memory component shortages that could slow industry growth.

The company's strong forecast exceeded investor expectations, reinforcing the belief that the tech rally is far from over as companies at the forefront of AI implementation continue to deliver robust growth. Chief investment strategist Charu Chanana of Saxo Markets noted that Nvidia's results validate the AI infrastructure trade, but cautioned against excessive optimism and suggested investors remain selective.

The positive earnings news extended to global tech stocks, with South Korean's Kospi closing 1.5% higher, while US chipmakers Micron Technology, Marvell Technology, and Broadcom climbed 4.1%, 4.7%, and 1.7%, respectively. Data storage companies SanDisk and Western Digital also rose 4.5% and 3.9%, respectively. Salesforce boosted shares by 11.6% after raising annual revenue and profit forecasts, while CrowdStrike experienced a 9.5% increase following a revenue forecast upgrade and better-than-expected second-quarter earnings.

The strong performance of software firms helped narrow the gap with semiconductors, considered the primary beneficiaries of the AI boom. Meanwhile, investors are now focusing on Federal Reserve Chair Kevin Warsh's first Jackson Hole address on Friday, which could provide clues on the central bank's stance on inflation and interest rates.