Nvidia’s stock fluctuated this week, rising 8.7% on Thursday before paring gains to end the week roughly flat with a 0.2% advance. The chipmaker reported fiscal second-quarter earnings of $2.22 per share on revenue of $96.2 billion, a 106% year-over-year increase. For the third quarter, Nvidia guided revenue to $108 billion, with a 2% margin of error, exceeding the $104.2 billion consensus estimate. The outlook excludes any data center sales from China. Barclays maintained an Overweight rating and a $275 price target, citing the company’s top-line growth forecast, while Morgan Stanley reiterated Nvidia as a Top Pick, highlighting its compelling product cycle and valuation below peers. Around 25% of total revenue is projected to come from AI labs next year.
Salesforce surged 22.6% on Thursday and added 3.6% on Friday, putting it on track for a weekly gain of more than 27%. The company posted adjusted earnings of $5.90 per share for the second quarter, beating the $3.27 consensus, while revenue of $11.3 billion matched estimates and rose 11% year-over-year. Analysts at Raymond James noted that Salesforce’s guidance stood out against peers, suggesting potential advantages in front-office software amid extended sales cycles. Bank of America’s Tal Liani described the broader outlook as solid, with the focus shifting from whether AI would replace CRM platforms to how effectively Salesforce could monetize the technology.
Cybersecurity stocks Okta and CrowdStrike also posted strong weekly gains. Okta jumped 28.6% on Thursday and climbed 24.9% over the week following a second-quarter earnings and revenue beat, along with improved full-year guidance. BMO Capital raised its price target to $187 from $168, maintaining an Outperform rating and Top Pick designation. The analyst cited a beat in current remaining performance obligations by about three percentage points and accelerating growth. Management noted that AI is not yet materially contributing to bookings but is expanding the pipeline. CrowdStrike rose 20.5% on Thursday and 14% over the week after posting an earnings beat and raising its outlook. Citizens analyst Rustam Kanga reiterated a Market Outperform rating and a $230 price target, pointing to durable growth across Falcon Cloud Security, Falcon Identity Protection, and Next-Gen SIEM, as well as innovation in AI-driven tools such as Charlotte AI.
PayPal shares fell 12.5% on Friday and 13.5% over the week after Bloomberg reported that a consortium led by Advent International and Stripe had abandoned its pursuit of the payments company. The collapse of the potential deal erased the premium built around a takeover scenario.
