AI-focused chipmaker Nvidia posted mixed weekly gains, rising 8.7% on Thursday before paring back 3.7% on Friday, ending the week broadly flat with a 0.2% advance. The company reported fiscal second-quarter earnings of $2.22 per share and revenue of $96.2 billion, up 106% year-over-year. Third-quarter revenue guidance of $108 billion, with a 2% margin of error, exceeded analyst expectations of $104.2 billion and excluded any data center sales from China. Barclays maintained an Overweight rating and a $275 price target, citing the company’s revenue growth forecast and an expected 25% contribution from AI labs next year. Morgan Stanley kept Nvidia as a Top Pick, citing a compelling product cycle and valuation below peers.
Cloud software provider Salesforce surged 22.6% on Thursday and added a further 3.6% on Friday, putting it on track for a weekly gain of more than 27%. The company reported adjusted earnings of $5.90 per share, beating the $3.27 consensus, while revenue reached $11.3 billion, matching estimates and rising 11% year-over-year. Analysts at Raymond James noted that Salesforce’s guidance stood out against peers, highlighting extended sales cycles through 2026. Bank of America’s Tal Liani stated that the quarter challenges the view that AI will displace Salesforce, shifting the debate to how effectively the company can monetize AI opportunities.
Cybersecurity stocks led broader gains in the sector. Okta jumped 28.6% on Thursday and climbed 24.9% over the week after posting second-quarter earnings and revenue beats alongside strong full-year guidance. BMO Capital raised its price target to $187 from $168, maintaining an Outperform rating and Top Pick designation. The firm highlighted a current remaining performance obligations beat of around three points and accelerating growth, while management noted that AI is not yet materially contributing to bookings but is expanding the pipeline. CrowdStrike rose 20.5% on Thursday and gained 14% over the week following an earnings beat and raised outlook. Citigroup reiterated a Market Outperform rating and a $230 price target, citing durable growth across Falcon Cloud Security, Falcon Identity Protection, and Next-Gen SIEM, alongside AI-driven innovation.
PayPal declined 12.5% on Friday and fell 13.5% over the week after a consortium led by Advent International and Stripe abandoned its pursuit of the payments company. The collapse of the potential deal unwound the premium associated with the acquisition, pressuring shares.
