A temporary U.S.-Iran ceasefire sparked a broad relief rally across assets on Wednesday, but experts warned that any deal concerning lasting peace will be complicated by a major trust deficit.

The ceasefire came following hastened diplomatic efforts led by Pakistan and just hours before Trump’s threatened deadline for wiping out the entire Iranian civilization, briefly pulling the region back from the brink of a massive military bombardment.

Oil prices cooled to below $100 per barrel following the ceasefire announcement, but remain far above the pre-war levels of around $70 per barrel.

While U.S. President Donald Trump said the two-week ceasefire was contingent on the “complete, immediate, and safe opening” of the Strait of Hormuz, Iranian officials stated that safe passage through the strait would be “possible,” subject to coordination with its armed forces and “technical limitations” — caveats that may give Iran some room to define compliance on its own terms.

“This is a problem that could derail the ceasefire later this year,” said Matt Gertken, chief geopolitical strategist at BCA Research, warning that the coordination requirement remains a risky ambiguity in both sides’ statements so far.

Trump may temporarily accept Iran as a gatekeeper — with U.S. midterm elections approaching and gasoline prices sharply higher than before the war — but after the election, the U.S. national security establishment will start to demand a more permanent solution,” said Gertken. “Fighting will ignite later this year, if not later this month.”

Tehran also said that its armed forces will cease defensive operations if attacks against Iran are halted. After the ceasefire came into effect at 8 p.m. ET Tuesday, missiles were still launched from Iran towards Israel and several Gulf states.

The reprieve on Tuesday would allow some time for the two sides to reach a longer agreement to end the six-week-old war, which has killed thousands of people and sparked a global energy crisis, with their delegations expected to meet in Islamabad on Friday.

Iran is reportedly finalizing a joint maritime protocol with Oman to institutionalize coordinated management of tanker traffic through the strait, which could embed Iranian authority over the crucial energy artery into a standing bilateral agreement.

Israel agreed to suspend strikes but urged Washington to press for deeper Iranian concessions, including the surrender of enriched uranium stockpiles. In its 10-point terms, Iran requested Washington to accept its uranium enrichment program and the lifting of all sanctions.

The ceasefire will likely hold in the near term, given the economic costs accruing to the global economy from six weeks of conflict, said Michael Langham, emerging markets economist at Aberdeen Investments. “Parties with vested interest in stopping the conflict and reopening the strait will double down on efforts to find a compromise,” he said.

If the truce holds and the strait reopens, the global economic damage should prove manageable, Langham added. Central banks could broadly resume their pre-conflict paths — and attention may shift from inflation to growth, if commodity prices normalize quickly, he added.

The ceasefire sparked a relief rally in markets amid repricing for a de-escalation in the conflict, but investors will watch for something more durable than a two-week pause, Geoff Yu, senior market strategist at BNY, said on CNBC’s “Squawk Box Asia” on Wednesday.

“What the market is going to start pricing ahead is a first step towards further de-escalation and perhaps something more permanent,” he said, flagging that the disruption has extended beyond crude oil to commodities such as helium, critical to semiconductor manufacturers in South Korea and Taiwan.

Broadcom said Monday that it’s agreed to produce future versions of artificial intelligence chips for Google, and signed an expanded deal with Anthropic that will give the AI startup access to about 3.5 gigawatts worth of computing capacity drawing on Google’s AI processors.

Shares of Broadcom rose 3% in extended trading.

The disclosure in a securities filing underscores the surging demand for infrastructure that can run generative AI models. Anthropic’s popularity has soared this year, with its Claude app becoming the top free U.S. app listed in Apple’s App Store in February after a dispute between the company and the Pentagon became public.

On an earnings call last month, Broadcom CEO Hock Tan said that “for Anthropic, we are off to a very good start in 2026” in providing 1 gigawatt of compute from Google’s homegrown tensor processing units (TPUs). Broadcom helps Google make its TPUs.

“For 2027, this demand is expected to surge in excess of 3 gigawatts of compute,” he said.

In a note following the earnings call, analysts at Mizuho led by Vijay Rakesh estimated that Broadcom would pick up $21 billion in AI revenue from Anthropic in 2026 and $42 billion in 2027. The filing on Monday did not contain a dollar amount.

Meanwhile, Broadcom is also collaborating with Anthropic rival OpenAI on custom silicon for AI. Both model builders currently rely heavily on graphics processing units from Nvidia through cloud providers such as Amazon, Google and Microsoft. OpenAI has also committed to drawing on six gigawatts of AMD’s GPUs, with the first gigawatt set to come in the second half of this year.

WATCH: Final Trades: Broadcom, Spotify, Applovin and Uber

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Nvidia’s yearly showcase event — dubbed the ‘Super Bowl of AI’ by some — kicked off at the start of the week to much fanfare across the tech sector. The event sees tens of thousands of attendees gather in California to get the latest on the world’s most valuable company’s plans for the future.

Didn’t manage to snag a ticket? No problem. I caught up with CNBC’s Katie Tarasov, who was on the ground at the event, to get a sense of what went down.

Katie: I’m always watching for the biggest hardware announcements because it’s Nvidia chips that are filling AI data centers and powering almost every major company’s AI ambitions. We saw two big new chip announcements during CEO Jensen Huang’s keynote on Monday.

First was an entirely new type of chip called a Language Processing Unit, or LPU. It’s the first chip Nvidia’s unveiling using technology it acquired from chip startup Groq in December. That $20 billion deal was Nvidia’s biggest purchase ever. While Nvidia’s star graphics processing units have thousands of cores that perform many operations simultaneously, the Groq 3 LPU is built with a single core optimized for speeding up those GPUs.

The other big chip announcement was the unveiling of a rack filled entirely with Nvidia’s newest Vera central processing units, or CPUs. I wrote a piece last week explaining how the CPU is having a renaissance as Nvidia sees it as a coming bottleneck for agentic AI, which requires more data transfer and general-purpose compute typically handled by the CPU.

Overall, I was personally blown away by the crowds and hype on the showroom floor — it was unrecognizable from my first GTC in 2019. I last sat down with Huang for a lengthy interview in 2022, and it was a fascinating conversation that’s informed much of my chip reporting since.

Katie: This is a difficult question to answer. Not even Huang’s expectations of $1 trillion in Blackwell and Vera Rubin purchase orders by 2027 moved the needle. It seems like Wall Street’s expectations are so high, it’s almost impossible for Nvidia to impress.

The U.S. Attorney’s Office for the Southern District of New York has charged associates of an unidentified U.S. server maker with illegally diverting billions of dollars in Nvidia-powered servers to China.

Chipmaker Micron reported it had tripled revenue and sailed past analysts’ estimates in its latest quarterly results on Wednesday, but champagne and party poppers were not the order of the day.

Micron’s revenue almost tripled in the latest quarter as results topped analysts’ estimates and guidance sailed past expectations. The stock, which is up more than 350% in the past year, slipped in extended trading.

Here’s how the company did relative to LSEG consensus:

• Earnings per share: $12.20 adjusted vs. $9.31 expected
• Revenue: $23.86 billion vs. $20.07 billion expected

Micron is benefiting from soaring demand for Nvidia graphics processing units that run generative artificial intelligence models. Each generation of Nvidia chip packs in more memory, creating a supply crunch. Micron has been working to add capacity, as have competitors Samsung and SK Hynix.

Revenue in the fiscal second quarter increased from $8.05 billion a year earlier, according to a statement.

For the current period, the company expects about $33.5 billion in revenue, up from $9.3 billion a year ago, implying growth of over 200%. Adjusted earnings per share will be about $19.15, Micron said. Analysts polled by LSEG had expected $12.05 in adjusted earnings per share on $24.3 billion in revenue.

“The step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints and Micron’s strong execution across the board,” CEO Sanjay Mehrotra said in prepared remarks the company issued at the time of the release.

Micron’s stock has been on a tear. The shares tripled in 2025 and have jumped another 62% year to date as of Wednesday’s close. Among the 10 most valuable U.S. tech companies, Micron is the only one that’s up. Oracle is the leading decliner, down 22%, and Microsoft and Tesla have also seen double-digit percentage drops.

“Looking at how the shares were trading going into this earnings report, I thought the biggest risk was high investor expectations,” said Hendi Susanto, a portfolio manager at Gabelli Funds, in an email. “However, fiscal third-quarter guidance is strong, well above analysts’ and my own expectations.”

Mehrotra said that AI and conventional servers are facing a “lack of adequate DRAM and NAND supply.” That refers to the company’s traditional memory products that have long been used in data centers and devices.

Memory companies have been shifting production capacity largely to high-bandwidth memory, which is embedded onto Nvidia’s latest GPUs and many other chips powering AI. Those products have higher margins.

The company’s GAAP gross margin, the profit left after accounting for the cost of goods sold, more than doubled in the past year to 74.4% from 36.8%, and increased from 56% in the prior quarter.

Net income climbed to $13.8 billion, or $12.07 per share, from $1.58 billion, or $1.41 per share, in the same quarter last year.

Micron said revenue in its cloud memory business rose more than 160% to $7.75 billion. The mobile and client unit saw even steeper growth, with revenue jumping to $7.71 billion from $2.24 billion a year ago.

Memory is typically a commodity business, which comes with lower margins than other silicon products and short-term contracts. In the past few months, memory companies have signed longer-term contracts as semiconductor makers work to ensure future capacity.

“As AI evolves, we expect compute architectures to become more memory-intensive,” the company said in an earnings presentation. “This is why we strongly believe that Micron is one of the biggest beneficiaries and enablers of AI.”

Mehrotra said on the earnings call that volume production of HBM4 for Nvidia’s Vera Rubin started in the fiscal first quarter, and next-generation HBM4e products will ramp in 2027. Nvidia has said it will utilize custom HBM in its next-generation Feynman GPU coming in 2028.

Mehrotra added that capital expenditures will “step up meaningfully” in fiscal 2027, with construction-related costs increasing by over $10 billion.

Micron is building two giant new campuses of fabrication plants in Idaho and New York to increase its memory manufacturing capacity in the U.S. Mehrotra said on the call that initial production at the Idaho site is expected by mid-2027. Micron broke ground in January on the massive $100 billion New York campus, and expects wafer output by the second half of 2028.

WATCH: How Micron is building the biggest-ever U.S. chip fab, despite China ban

Hello, this is Leonie Kidd writing to you from London. Welcome to another edition of CNBC’s Daily Open.

U.S. President Donald Trump continues to dominate the news cycle, and his latest round with reporters in the Oval Office has yielded more headlines and market moves this morning. It’s only Tuesday and already it’s been a volatile week for oil, which remains the epicenter of trading action.

Market participants — as well as us journalists — will need to stay on their toes to keep up with developments.

Oil prices jumped over 2% on Tuesday as uncertainty lingered over a U.S.-led coalition to protect shipping through the Strait of Hormuz. President Donald Trump suggested Monday that the coalition was not fully in place as he urged other countries to get involved.

Energy analysts and traders said Monday that they wouldn’t be surprised if oil prices climb to as high as $200 per barrel as the sprawling Middle East crisis drags on.

Meta has signed a new long-term agreement to spend up to $27 billion on Dutch cloud provider Nebius‘ AI infrastructure, the company announced on Monday.

Nebius’ shares surged 14% in premarket trading.

Over the next five years, Nebius will provide $12 billion of dedicated capacity across a number of locations, including on what the company says will be one of the first large-scale deployments of Nvidia’s latest AI-specialist Vera Rubin chips.

Meta has also committed to purchase additional available compute capacity from Nebius, worth up to a total of $15 billion over five years.

Netherlands-based Nebius has emerged as a leading European player in the rapidly developing AI cloud computing space. The company has seen its share price increase more than 400% since listing in New York in 2024.

“We are pleased to expand our significant partnership with Meta as part of securing more large, long-term capacity contracts to accelerate the build-out and growth of our core AI cloud business,” Arkady Volozh, founder and CEO of Nebius, said in a statement.

Citi said Monday it was initiating coverage of Nebius with a buy/high risk rating, which it noted was supported by a “differentiated view on AI datacenter [total addressable market] growth, margin improvement and NBIS’s capital-efficient scaling.”

Meta is part of a group of hyperscalers planning huge spending as they race to build out infrastructure to power the AI boom.

The company said its AI-related capital expenditure would hit between $115 billion and $135 billion this year, as part of a combined $700 billion in spending by hyperscalers including Amazon, Alphabet and Microsoft.

It comes as investors pile into the AI cloud computing sector. U.K.-based AI data center startup Nscale announced it had raised $2 billion at a $14.6 billion valuation last week, from investors including Nvidia.

The chip giant also announced it would invest $2 billion in Nebius last week, which saw the Dutch company’s stock pop 16%.

Nebius was founded in 2022 after a restructuring of Russian company Yandex’s operations based outside of its home market and listed in New York in 2024. Its share price rose more than 200% in 2025 and has increased by 35% so far in 2026.

The company also inked a deal to deliver computing resources to Microsoft, worth up to $19.4 billion over five years, in September.

Broadcom CEO Hock Tan sees the artificial intelligence boom gaining so much steam that he’s projecting AI chip revenue next year “significantly in excess of $100 billion.”

After the chipmaker reported better-than-expected results for the fiscal first quarter and issued a strong forecast for the current period, Tan said on his company’s earnings call that demand is picking up from large customers that are increasingly in need of Broadcom’s help in designing custom silicon.

“We have also secured the supply chain required to achieve this,” Tan said, regarding the 2027 sales target.

AI revenue in the first quarter more than doubled from a year earlier to $8.4 billion, while total sales increased 29% to $19.3 billion. The company expects AI semiconductor revenue of $10.2 billion this quarter.

Broadcom shares popped more than 5% in extended trading on Thursday after Tan’s comments.

Chip companies like Broadcom have faced a number of headwinds in recent months, including a shortage of the high bandwidth memory crucial for custom accelerators, and capacity constraints at the most advanced levels of chip manufacturing and packaging.

Broadcom helps its customers translate their chip designs into silicon, providing back-end support before the processors are sent off to be manufactured at huge fabrication plants by companies like Taiwan Semiconductor Manufacturing Company.

It’s a role that’s fueled Broadcom’s growth as more tech giants design in-house accelerators for AI. Tan said custom AI deployment is entering its “next phase” and is expected to speed up, as the company helps six key customers design their chips. Chief among those are Google, Meta, Anthropic and OpenAI, with Fujitsu and ByteDance likely as the final two.

Google was the first to the in-house chip game in 2015, with its tensor processing units designed alongside Broadcom. Google has made its chips available to cloud customers since 2018, with key customers now including Apple and Anthropic. Broadcom expects even stronger demand from next-generation Google chips in 2027.

Meta is also reportedly in talks to use Google’s TPUs, and Broadcom assists the social media company with developing its own MTIA accelerator. Analysts have cast doubt on the future of Meta’s custom silicon program, but the “MTIA roadmap is alive and well,” Tan said on the earnings call.

During the question and answer portion of the call, Bernstein Research analyst Stacy Rasgon pushed Tan on the specific sources of the projected $100 billion in AI chip revenue. He counted 3 gigawatts of capacity at Anthropic, 3 gigawatts at Google, at least 2 gigawatts with Meta, and 1 gigawatt from OpenAI, among others. Tan said the dollars per gigawatt “vary, sometimes quite dramatically,” but that his estimates were “not far” off.

While Tan said that the AI revenue boost would come from “just chips,” Broadcom makes much more than just AI accelerators. Ben Bajarin of Creative Strategies said it includes digital signal processors, data processing units and networking switches.

It’s “everything in that bucket,” Bajarin said.

— CNBC’s Jordan Novet contributed to this report.

WATCH: Broadcom CEO on Ai revenue