What AI fears? Nvidia and a disparate group of software companies have dispelled and debunked a whole host of longstanding tech concerns in the final throes of earnings season-at least for now.
The AI chip maker signaled that the boom is in no way about to slow down, issuing a jaw-dropping 70% revenue growth forecast for next year. Cue a chip stocks and general momentum rally Thursday.
That has often meant a software slump but not today, thanks to Salesforce, Okta, CrowdStrike, and Nutanix earnings. AI disruption worries have plagued the sector this year, but the market may have been spooked too easily.
Anthropic, the sector's tormentor-in-chief for large parts of the year, is starting to look more like a friend than a foe. Salesforce unveiled 'Claudeforce' late Wednesday, integrating its systems into Anthropic's Claude chatbot. It's better to have your enemies inside the tent, and all that.
For cybersecurity companies, like CrowdStrike and Okta, the rapid rise in AI adoption is leading to an equally dramatic jump in demand for its products.
The market's deep-seated fears may never completely disappear but for now the AI trade is reigniting.
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📈 Here's what's happening in markets today:
Stocks look set to rally after Nvidia's solid second-quarter earnings.
How Nvidia stock finally snapped its post-earnings losing streak.
Marvell, Salesforce, Alphabet, and more stocks that explain today's market.
Apple and Microsoft are missing out on today's tech rally.
Nvidia, Salesforce, and CrowdStrike prove it pays to bet on the AI veterans.
Best Buy earnings deliver against Wall Street's lofty expectations.
Dollar Tree earnings score with tariff refunds.
Dollar General hikes earnings guidance.
Wendy's stock sinks after report Trian backs away from bid.
Ulta Beauty earnings are coming after an ugly stock selloff.
SpaceX stock gets a lift from Nvidia earnings.
Fed's Warsh has little room to falter at Jackson Hole.
🛡? CrowdStrike, Okta see security demand boom as AI adoption surges
AI adoption is driving structural security demand, and CrowdStrike and rivals such as Okta, Palo Alto Networks, and Zscaler are seeing the benefits. CrowdStrike CEO George Kurtz said securing AI will be its biggest market opportunity ever, while Okta CEO Todd McKinnon noted companies need to control the access and actions of AI agents.
🤖 OpenAI explains how its bots went rogue and its response
Speaking of reining in AI, OpenAI explained how its artificial intelligence models circumvented controls to compromise parts of its internal research infrastructure and do things humans didn't direct to breach the systems of Hugging Face, another AI company. "We consider this incident a 'warning shot' for us and for the world," it said.
?? Meta's $18 billion settlement is a win but questions remain
Meta Platforms' $18 billion proposed settlement in the child-harm social media lawsuit staves off the threat of a huge financial penalty but questions remain. Meta agreed to put time limits on its sites to help protect children, but some of the settlement funds won't be released unless rival platforms like TikTok and YouTube implement time limits.
?? Tiny nuclear reactors are coming to Army bases
A tiny trend is taking off in nuclear energy, and it just got a big assist from the government. Microreactors that can fit on the back of a truck are the latest move by the U.S. Army, which has selected five companies to build them for bases across the country, hoping to switch on the first two years from now. Data centers could be next.
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💊 What a pancreatic cancer pill's approval means for this pharma stock
Revolution Medicines secured earlier-than-anticipated regulatory approval for a daily pancreatic cancer pill touted by a former member of Congress and cancer patient as a "miracle drug." Its part of the intense competition in the cancer-drug market as Eli Lilly rushes to build its oncology division and Merck stares down patent expiration on Keytruda.
💬 Quote of the day:
Other headlines moving markets:
HP keeps getting squeezed by 'RAMageddon.'
Why is Intuit stock getting slammed after strong earnings?
The New York Rangers are among the NHL's most valuable teams, but they're not profitable.
Bond yields are rising. What investing pros say to do now.
SpaceX spending spree knows no limits. That's OK with Wall Street.
Vanguard is going after a business Schwab and Fidelity dominate.
Apple sets iPhone launch event for Sept. 9. What to expect.
How 'cash returns' are replacing AI momentum.
Tariffs hurt Williams Sonoma more than the housing market.
How China's 2023 Micron ban became a blessing in disguise.
Waymo heads to Germany as robo-taxi competition with Tesla heats up.
Forget the VIX-bond yields are the market's new fear index.
Gold is on a roll. How much is too much for retirees?
This market strategist sees trouble ahead for AI stocks. What to buy instead.
As billionaires' ranks swell, here's one living his best life.
I want to hear from you! If you've got a great story for us, get in touch! You can email me at barronsdaily@barrons.com
-Edited by Liz Moyer, Stacy Ozol, and Rupert Steiner