Major U.S. software and cybersecurity stocks surged this week, led by Nvidia and Salesforce, while PayPal slumped after acquisition talks collapsed.
Nvidia’s stock ended the week virtually flat with a 0.2% gain despite a 3.7% drop on Friday, following an 8.7% rise on Thursday. 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 current quarter, Nvidia projected revenue of $108 billion, excluding China data center sales, topping the $104.2 billion consensus estimate. Barclays maintained an above-average rating with a $275 price target, citing AI-driven revenue growth, while Morgan Stanley reiterated its top-pick status due to strong product cycles and valuation.
Salesforce shares jumped 22.6% on Thursday and an additional 3.6% on Friday, capping a weekly gain of over 27%. The company reported adjusted earnings of $5.90 per share on $11.3 billion in revenue, matching estimates and rising 11% year-over-year. Analysts highlighted Salesforce’s resilience amid extended software sales cycles, with Bank of America describing its outlook as solid and shifting the AI debate toward monetization opportunities.
Cybersecurity stocks also outperformed, with Okta rising 24.9% and CrowdStrike gaining 14% for the week. Okta’s second-quarter profit and revenue exceeded expectations, prompting BMO Capital to raise its price target to $187. CrowdStrike beat profit estimates and raised its outlook, with Citizens reiterating a $230 target on strong product growth.
PayPal shares fell 12.5% on Friday and 13.5% for the week after a consortium led by Advent International and Stripe abandoned acquisition talks, erasing the premium tied to deal expectations.
