CNBC: Nvidia, Salesforce and CrowdStrike earnings boosted optimism about AI investments
Financial results from Nvidia, Salesforce and CrowdStrike supported the conclusion that the development of artificial intelligence infrastructure can be profitable simultaneously for equipment manufacturers and software developers. CNBC reports.
Over the week, the Nasdaq Composite rose by 0.9%, the S&P 500 by 0.5%, and the Dow Jones Industrial Average also by 0.5%. A significant portion of the gains came on Thursday after Nvidia published strong quarterly results and a forecast for the next fiscal year.
Demand for Nvidia chips
Nvidia exceeded market expectations for the second fiscal quarter and recorded a fourth consecutive quarter of accelerating revenue growth. The company’s shares ended the week up 1%.
During the earnings conference call, it became known that Amazon plans to purchase another 2 million Nvidia graphics processing units in 2027 and 2028, while also developing its own AI chips. Nvidia CEO Jensen Huang said that the payback period for clients’ capital investments in such infrastructure is now less than one year.
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Nvidia CFO Colette Kress said that the company’s growth in the current quarter will primarily be driven by clients outside the group of the largest cloud operators. She named the so-called neocloud companies CoreWeave and Nebius, as well as corporate customers.
AI supported software developers
Salesforce also exceeded revenue forecasts and provided a positive outlook. Its CEO Marc Benioff said that nine out of ten leading AI companies use Salesforce products, while their spending increased by 435% year on year. The company introduced Claudeforce, a tool that enables salespeople to use Anthropic’s Claude to work with customer data in Salesforce, including drafting emails and updating records.
CrowdStrike’s revenue increased by 26%. Company CEO George Kurtz linked demand for cybersecurity to the growing number of AI-enabled attacks. On Thursday, Salesforce shares jumped 22%, CrowdStrike rose about 20%, and Palo Alto Networks gained 13%.
Meta’s agreement with U.S. states
Separately, Meta agreed to an $18 billion settlement with the attorneys general of 48 U.S. states, the District of Columbia and three territories over claims concerning possible harm to young users of social platforms. Under the agreement, Meta must introduce additional safeguards for minors, including default daily time limits, enhanced parental controls, age verification and restrictions on push notifications during school hours. Meta shares ended the week up 5%.
