- Nvidia (NASDAQ:NVDA) shares fell more than 4 per cent, dragging chip stocks lower, despite the company beating Q4 earnings and revenue expectations
- Other semiconductor names dropped over 5 per cent, contributing to broader market weakness
- Salesforce (NYSE:CRM) rose 3.5 per cent on strong quarterly results, though gains were capped by a disappointing fiscal 2027 revenue forecast amid ongoing AI‑related disruption concerns
- Nvidia stock (NASDAQ:NVDA) opened trading at US$194.27 and Salesforce stock (NYSE:CRM) opened trading at US$196.76
U.S. stocks retreated on Thursday as Wall Street digested fresh earnings from two major tech names—Nvidia (NASDAQ:NVDA) and Salesforce (NYSE:CRM) —with results that, while individually strong, failed to lift broader market sentiment. The S&P 500 slipped 0.7 per cent and the Nasdaq Composite fell 1.5 per cent, even as the Dow Jones Industrial Average managed a modest 74‑point gain.
Nvidia slumps despite earnings beat
Shares of Nvidia dropped more than 4 per cent, putting the chipmaker on track for its worst trading day since April, despite posting a Q4 earnings and revenue beat. Investors reacted coolly to the results, sending the stock roughly 5 per cent lower in mid‑session trading.
The weakness in Nvidia rippled across the semiconductor sector. Other major chipmakers—including Broadcom (NASDAQ:AVGO), Western Digital Corp. (NASDAQ:WDC), Lam Research Corp. (NASDAQ:LRCX), and Applied Materials (NASDAQ:AMAT)—fell more than 5 per cent on the day, extending the decline across the tech‑hardware space.
Salesforce rises on strong results, but guidance disappoints
On the flipside, Salesforce shares climbed 3.5 per cent after the software giant delivered quarterly results that beat expectations on both revenue and earnings. However, the move higher remained constrained by a fiscal 2027 revenue forecast that fell short of market hopes.
Salesforce has been one of the companies most affected by investor concerns over artificial intelligence disrupting traditional software spending. Analysts noted that while its earnings were solid, the company’s guidance did little to calm broader pessimism in the software sector.
Market context
Thursday’s pullback followed an upbeat earlier session for U.S. equities, but volatility remains elevated across tech and software stocks as investors weigh the pace of AI adoption and its potential impact on legacy business models.
About the players in the game
Nvidia Corp. is a full-stack computing infrastructure company and Salesforce Inc. provides customer relationship management technology that connects companies and customers together worldwide.
Nvidia stock (NASDAQ:NVDA) opened trading at US$194.27 and is up more than 40 per cent since this time last year, while Salesforce stock (NYSE:CRM) opened trading at US$196.76 but is down more than 30 per cent since this time last year.
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