Nvidia, Salesforce Jump 8% and 22% as Earnings Undercut 2 Major Tech Bear Cases
Updated
Updated · CNBC · Aug 27
Nvidia, Salesforce Jump 8% and 22% as Earnings Undercut 2 Major Tech Bear Cases
3 articles · Updated · CNBC · Aug 27
Summary
Salesforce surged 22% and Nvidia rose 8% after both beat quarterly expectations, prompting investors to reassess bearish assumptions that had weighed on the stocks.
Salesforce's report showed its strongest sales growth in four years, near-historic low customer attrition and AI-bundle bookings that more than doubled from the prior quarter.
Its expanded Anthropic tie-up on Claudeforce also challenged the view that advanced AI models would weaken traditional software vendors by replacing subscriptions.
Nvidia's results pushed back on worries about slowing hyperscaler demand, custom-chip competition and product delays, with CEO Jensen Huang saying Vera Rubin remains on schedule.
The chipmaker's outlook was the biggest surprise: Nvidia signaled roughly 70% revenue growth in fiscal 2028, far above Wall Street's roughly 45% expectation.
Wall Street bears were crushed by Nvidia's hidden demand, but could the $500 billion infrastructure push be a masked AI bubble waiting to burst?
Salesforce proved AI isn't killing software yet, but will their new Claudeforce integration secretly hand all enterprise data leverage to Anthropic?
With GPUs lasting longer than expected, will Nvidia's strategy to integrate with rival custom chips secure their monopoly or accelerate their obsolescence?