By Lim Hui Jie
Publication Date: 2026-08-27 01:11:00
Nvidia’s logo is displayed at their headquarters on Aug. 26, 2026 in Santa Clara, California.
Benjamin Fanjoy | Getty Images
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.
During the American gold rush, the folks selling picks and shovels to the miners made a lot of money.
The current AI rush also seems to be rewarding those providing the tools. Nvidia, with its chips, is the company selling the picks and shovels to AI majors such as OpenAI and Anthropic.
The sales have been massive. Nvidia reported results that beat expectations, while forecasting revenue to grow 70% in fiscal 2028.
But when shovels become too expensive, the miners start forging their own. OpenAI has begun developing their own chips, making the company a potential competitor to Nvidia in some areas.
What you need to know today
Nvidia results beating market estimates is becoming a new normal. The company reported better-than-expected second-quarter results and issued revenue forecast that topped estimates.
For the three months ended June, revenue more than doubled to $96.22 billion, and net income in the quarter also jumped over 100% to $53.95 billion, or $2.22 per share.
CFO Colette Kress said on a call with analysts that Nvidia expects fiscal 2028 revenue growth of 70%, far exceeding the 44% analysts were expecting.
There is, however, a growing threat to Nvidia, or at least to parts of its business, as AI makers are increasingly announcing their own…
