Nvidia Forecast Fuels Tech Rally as Fed Awaits

Nvidia's robust forecast lifted technology-heavy Nasdaq stocks on August 27. The chip maker's revenue growth projection of 70% in 2027 met lofty investor expectations, boosting views that the tech rally has room to run.

The S&P 500 closed higher at 7,730.99, up 55.29 points or 0.72%, while the Nasdaq Composite gained 411.16 points or 1.57% to 26,541.35. US chip-linked stocks rose broadly, with the semiconductor index increasing by 2.3%.

Nvidia's forecast exceeded Morgan Stanley's estimate of a 52% rise and consensus estimates closer to 40%. The company warned that shortages of memory components could curb growth in the industry.