The big lesson from this week's earnings: The AI buildout is not a zero-sum game
Salesforce, CrowdStrike, and Nvidia all faced major tests with investors and crushed expectations.
TL;DR
- The tech-heavy Nasdaq Composite and S&P 500 saw gains, boosted by Nvidia's strong earnings and forward guidance.
- Nvidia exceeded expectations for its fiscal second quarter, driven by accelerating revenue growth and a strong outlook, with Amazon committing to further GPU purchases.
- Salesforce and CrowdStrike reported better-than-expected results, indicating that AI is acting as a tailwind for software companies rather than a threat.
- Meta reached an $18 billion settlement with attorneys general from 48 states, Washington D.C., and three U.S. territories, removing a significant legal overhang.
- The settlement requires Meta to implement enhanced protections for younger users on its platforms.
- Fed Chairman Kevin Warsh's Jackson Hole speech suggested that inflation concerns could keep another rate hike on the table, increasing odds of a September hike.