This week's impressive earnings results showed that the AI buildout is not a zero-sum game: both hardware and software stocks can win. The tech-heavy Nasdaq Composite and the S&P 500 gained 0.9% and 0.5%, respectively, while the blue-chip Dow Jones Industrial Average added 0.5%, marking its first winning week in three. Much of the gains came Thursday, when the ripple effects of Nvidia's stellar earnings and forward guidance helped lift all three averages:
Nvidia, the AI chip leader, delivered better-than-expected fiscal second-quarter results, marking its fourth straight quarter of accelerating revenue growth. Amazon will purchase an additional 2 million Nvidia GPUs in 2027 and 2028. Salesforce also delivered better-than-expected results, while CrowdStrike reported a 26% revenue increase:
Meta agreed to an $18 billion settlement, which is a significant win for the company as it reduces the risk of a prolonged trial:
