SNDK

Broadcom AVGO reported third-quarter fiscal 2026 non-GAAP earnings of $3.32 per share, up 96.4% year over year and 3.11% above the Zacks Consensus Estimate. Revenues surged 85.5% year over year to $29.59 billion and beat the consensus mark by 0.41%. Strong custom AI accelerator and networking demand drove the quarterly results. AI semiconductor revenues jumped 221% year over year to $16.7 billion. Broadcom Inc. price-consensus-eps-surprise-chart | Broadcom Inc. Quote AI semiconductor revenues represented 56% of total revenues. XPU shipments increased more than 3.5 times year over year and accounted for 73% of AI revenues, while AI networking revenues rose more than 2.5 times.Broadcom shipped Ironwood TPU v7 in high volume to Anthropic and Google, began production shipments of Google’s next-generation TPU v8i and shipped OpenAI’s first-generation Jalapeno custom accelerator. AVGO expects Meta’s MTIA accelerator to enter production shipments in the fourth quarter.Semiconductor Solutions revenues surged 127% year over year to a record $20.84 billion and represented 70% of total revenues. Non-AI semiconductor revenues were $4.2 billion, up 5% year over year and flat sequentially.The segment's operating margin rose 440 basis points (bps) year over year to 61% as revenue growth outpaced operating expense growth. Broadcom continues to invest in research and development while expanding capacity for substrates and optical components to support semiconductor demand. Infrastructure Software revenues increased 29% year over year to $8.75 billion and contributed 30% of total revenues. Annualized recurring revenue (ARR) grew 15% year over year.Software operating margin expanded 650 bps year over year to roughly 84%. Broadcom also introduced VMware Private AI Cloud, aimed at letting enterprises run AI alongside existing applications while maintaining security, compliance and control over data. Non-GAAP gross margin was $22.19 billion, translating to a 75% gross margin. The margin declined 210 bps sequentially as AI semiconductor revenues became a larger part of the sales mix.Non-GAAP operating expenses were $2.1 billion compared with $2.04 billion a year earlier. Non-GAAP operating income increased 92% year over year to $20.1 billion, while the operating margin reached 67.9%, reflecting operating leverage from the sharp revenue increase. The company ended the quarter with $24 billion in cash and cash equivalents.Broadcom generated $14.20 billion in cash from operations and spent $532 million on capital expenditures. Free cash flow reached a record $13.67 billion, equal to 46% of revenues.AVGO paid $3.1 billion in dividends and reduced long-term debt by $5.6 billion during the quarter. The board also approved a quarterly dividend of 65 cents per share. For the fourth quarter of fiscal 2026, Broadcom expects revenues of approximately $34.8 billion, representing 93% year-over-year growth. Semiconductor revenues are projected at about $26.1 billion, including $21.7 billion of AI semiconductor revenues, up 236%.Infrastructure Software revenues are expected at roughly $8.7 billion. Broadcom forecasts a non-GAAP operating margin of about 66% and a gross margin of approximately 73% as the mix shifts further toward XPUs with higher memory content. Broadcom now expects fiscal 2026 AI semiconductor revenues of $58 billion, up 186% year over year and above its prior $56 billion outlook. The company has secured supply to support approximately $115 billion of AI semiconductor revenues in fiscal 2027.AVGO also sees fiscal 2028 AI semiconductor revenues reaching $230 billion. The company said demand exceeds its fiscal 2027 outlook, while deployment timing depends on factors including data-center readiness, leading-edge silicon, substrates and memory supply. Broadcom carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader Zacks Computer and Technology sector are Silicon Motion Technology SIMO, Sandisk SNDK and Teradyne TER. Each of the three stocks sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rates for Silicon Motion Technology, Sandisk and Teradyne are pegged at 53.59%, 48.16% and 54.38%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Sandisk Corporation (SNDK) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sandisk (NASDAQ:SNDK) built its name on memory cards and flash drives. But in its fiscal fourth quarter of 2026, which ended July 3, the company sold $2.98 billion of storage to datacenter customers -- about a third of its $8.97 billion in total revenue. A year earlier, that datacenter business generated just $213 million in quarterly sales. The scale of the change goes beyond one quarter. Sandisk separated from Western Digital in February 2025, and in fiscal 2026, its first full year on its own, it generated $20.25 billion of revenue, up 175%, with the datacenter piece up 437%. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » But the bigger change isn't who is buying the company's storage. It's how they're buying it. Image source: Getty Images. Showing just how fast the customer base is moving, datacenter revenue has climbed for three straight quarters. It was $440 million in the fiscal second quarter, about 15% of the company's revenue. By the fiscal third quarter, it had grown to $1.47 billion, about 25%. And it hit $2.98 billion in the fourth, about a third of the total. That said, the edge business, which sells flash storage to makers of PCs, smartphones, gaming consoles, and cars, is still the biggest piece of the company, at $5.43 billion of fiscal fourth-quarter revenue. Consumer products, however, contributed just $556 million, about 6% of the quarter and down 5% year over year. In other words, the retail cards and drives Sandisk is named for are now its smallest business. Memory pricing is famously boom-and-bust, and Sandisk's answer is what it calls the New Business Model (NBM) -- multiyear supply agreements signed directly with large datacenter and edge customers. The terms are what make the shift structural. Chief financial officer Luis Visoso said on the company's August earnings call that Sandisk now has 10 of these agreements across eight customers, five of them signed since April. The agreements run as long as five years, with a weighted average duration of more than four years. Pricing includes fixed and variable elements, with the variable portion subject to floors and ceilings. In total, the NBMs Sandisk has signed represent a minimum of $93.9 billion in expected revenue, assuming every variable price settles at its floor. The deals are also backed by $16.5 billion of customer cash deposits and financial instruments. The contracted share is still growing, too. Management expects NBMs to cover about half of Sandisk's bit shipments in fiscal 2027, and about two-thirds in fiscal 2028. Of course, contracted volume isn't the same thing as guaranteed revenue, and the ceilings may cap Sandisk's upside if spot prices keep climbing. But I'd argue the floors matter more than the $93.9 billion headline number. Minimum prices under a growing share of shipments change the downside math in an industry known for brutal crashes. For all that structure, fiscal 2026 was mostly a pricing story. Sandisk's total products sold rose by a mid-teens percentage on an exabyte basis (a measure of raw storage volume shipped), while revenue rose 175%. And management said about two-thirds of the fiscal fourth quarter's sequential revenue growth came from higher pricing, with one-third from higher volumes. That pricing boom shows up most clearly in profitability. Gross margin reached 84.6%, up from 26.2% in the year-ago period. The company also swung to $6.9 billion of quarterly net income from a small loss a year earlier. And free cash flow for the full year went from a $120 million outflow in fiscal 2025 to $11.5 billion. Management doesn't expect a cooldown yet, either. It guided fiscal first-quarter 2027 revenue between $10.3 billion and $10.8 billion, up 15% to 20% sequentially, with gross margin expected to stay at 83% to 85%. The market remains skeptical, though. Shares trade around $1,537 as of this writing, down about 35% from a 52-week high, at about 21 times fiscal 2026 earnings. Measured against expected earnings for fiscal 2027, the price-to-earnings multiple falls to about 7. A steep decline in memory pricing, in other words, is arguably already priced in. Is Sandisk a different company now? On the customer side, I think it clearly is. A third of revenue comes from data centers, about half of this fiscal year's shipments are already committed under contract, and there are price floors where prices used to float freely. However, the new model hasn't been tested by a downturn yet. And even Sandisk's own long-term financial model, laid out at its August investor day, calls for non-GAAP (adjusted) gross margins of about 80% for fiscal 2028 through 2030 -- below the 84.6% it just reported. The floors cushion a fall in contracted pricing. They don't make fiscal 2026's boom prices permanent. Before you buy stock in Sandisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sandisk wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 2, 2026. Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Western Digital. The Motley Fool has a disclosure policy. Data Centers Now Deliver a Third of Sandisk's Revenue -- $2.98 Billion in a Single Quarter was originally published by The Motley Fool

The S&P 500 Index ($SPX) (SPY) is up by +0.59% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.33%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +1.03%.  E-mini S&P futures (ESU26) are up +0.55%, and September E-mini Nasdaq futures (NQU26) are up +1.02%. Stock indices are moving higher today, with the S&P 500 and Nasdaq 100 posting 1-week highs.  A blowout outlook from Nvidia is bolstering confidence in the artificial intelligence trade and powering technology stocks higher today.  Nvidia is up more than +6%, leading chipmakers and AI-infrastructure stocks higher after issuing a revenue growth forecast for fiscal 2028 far above expectations.  Also, a $31 billion joint venture between Sandisk and Kioxia Holdings to ratchet up flash memory production added to the bullish tone in technology stocks.  In addition, cybersecurity stocks are stronger today after better-than-expected earnings from Okta and CrowdStrike Holdings, and software stocks are climbing after Salesforce forecasted revenue above consensus. Warren Buffett Says Peter Thiel Can Quit Giving Pledge If It’s Too ‘Woke’ for Him — ‘A Lot of Reasons Why Rich People Don’t Like Other Rich People’ Elon Musk Says We’re ‘1000% Going to Go Bankrupt’ Without Al and Robots — ‘We’re Totally Screwed’ as Interest on National Debt Tops $1 Trillion Nvidia Reports $7.8 Billion in Q2 Gains on Equity Portfolio That Includes SpaceX, Intel, CoreWeave, and More Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Signs of strength in the US labor market are positive for economic growth and stocks after weekly initial unemployment claims unexpectedly fell -4,000 to 203,000, showing a stronger labor market than expectations of an increase to 208,000. Hawkish Fed comments today are bearish for stocks and bonds.  Kansas City Fed President Jeff Schmid said current Fed policy is not restraining the economy while inflation continues to run above its 2% target.  He added that the interest rate setting "might be accommodative on the short end" and that "we've got work to do."  Also, Cleveland Fed President Beth Hammack said now is the time to act to contain inflation, and "I think it's appropriate for the Fed to put some restraint there to help bring inflation back down to target." Oct WTI crude oil prices (CLV26) are moving higher today on a Bloomberg report that said Russia was planning to escalate the war in Ukraine, which could disrupt Russian crude output and lower global oil supplies.  Crude prices fell to a 2-week low on Wednesday after Iran’s military said it reached a revenue-sharing agreement with Oman on the reopening of the Strait of Hormuz.  Crude prices have fallen more than -8% this week on signs of easing tensions in the Middle East and a partial resumption of crude supplies through the Strait of Hormuz. On Tuesday, The New York Times reported the US State Department is preparing to send US diplomats back to embassies in the Middle East that were evacuated before and during the war with Iran, suggesting that the Trump administration does not anticipate a return to all-out hostilities with Iran. The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence.  AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.  So far, earnings results have been positive, with 86% of the 478 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data. The markets are discounting a 35% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16. Overseas stock markets are mixed today.  The Euro Stoxx 50 is down -0.71%.  China's Shanghai Composite climbed to a 1-week high and closed up +1.13%.  Japan's Nikkei-225 Stock Average fell from a 1-week high and closed down -0.20%. Interest Rates September 10-year T-notes (ZNU6) are up +2 ticks today.  The 10-year T-note yield is down -0.6 bp to 4.654%.  T-notes recovered from early losses and are slightly higher today.  Short covering in T-notes has emerged ahead of Fed Chair Warsh’s speech at the Fed’s annual symposium in Jackson Hole, Wyoming, on Friday. T-notes initially moved lower today amid strength in stocks, which is curbing safe-haven demand for government debt securities.  Supply pressures are negative for T-notes as the Treasury will auction $44 billion of 7-year T-notes later today.  In addition, an unexpected decline in weekly US jobless claims is bearish for T-notes.  Finally, hawkish Fed comments today from Kansas City Fed President Jeff Schmid and Cleveland Fed President Beth Hammack undercut T-notes when they said now is the time to act to contain inflation. European government bond yields are mixed today.  The 10-year German bund yield is up +1.1 bp to 3.245%. The 10-year UK gilt yield is down -1.0 bp to 5.021%. Eurozone July M3 money supply rose +3.4% y/y, weaker than expectations of +3.5% y/y. The German Sep GfK consumer confidence index rose +2.8 to a 6-month high of -26.6, stronger than expectations of -29.5. Markets are discounting a 97% chance of a +25 bp ECB rate hike at its next policy meeting on September 10. US Stock Movers Chipmakers and AI-infrastructure stocks are rallying today after Nvidia reported Q2 revenue of $96.22 billion, well above the consensus of $92.38 billion, and projected fiscal 2028 revenue to grow about 70%. The iShares Semiconductor ETF (SOXX) is up more than +1%. Nvidia (NVDA) is up more than +7%, and Intel (INTC) and Broadcom (AVGO) are up more than +3%.  Also, ARM Holdings (ARM), Lam Research (LRCX), NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), and Texas Instruments (TXN) are up more than +1%. Software stocks are moving higher today, led by a +20% surge in Salesforce (CRM) to lead gainers in the  S&P 500 and Dow Jones Industrials after it forecasted Q3 revenue of $11.42 billion to $11.50 billion, with the midpoint above the consensus of $11.42 billion.  Also, ServiceNow (NOW) is up more than +8%, and Datadog (DDOG) and Atlassian Corp (TEAM) are up more than +6%.  In addition, Adobe Systems (ADBE) and Autodesk (ADSK) are up more than +5%, and Palantir Technologies (PLTR), Workday (WDAY), and International Business Machines (IBM) are up more than 31%. Cybersecurity stocks are stronger today, following stellar earnings results from Okta and Crowdstrike Holdings.  Okta (OKTA) is up more than +21% after boosting its 2027 revenue forecast to $3.22 billion to $3.23 billion from a previous forecast of $3.19 billion to $3.21 billion, above the consensus of $3.20 billion.  Crowdstrike Holdings (CRWD) is up more than +17% to lead gainers in the Nasdaq 100 after raising its 2027 adjusted operating income forecast to $1.50 billion-$1.51 billion from a previous forecast of $1.45 billion-$1.48 billion, better than the consensus of $1.47 billion.  Also, Palo Alto Networks (PANW) is up more than +10%, and Zscaler (ZS) is up more than +9%.  In addition, SentinelOne (S) is up more than +7%, and Cloudflare (NET) and Fortinet (FTNT) are up more than +5%. Cryptocurrency-exposed stocks are sharply higher today, with Bitcoin (^BTCUSD) up more than +2%.  Strategy (MSTR) is up more than +10%, and MARA Holdings (MARA) is up more than +9%.  Also, Coinbase Global (COIN), Riot Platforms (RIOT), Galaxy Digital Holdings (GLXY), and Circle Internet Group (CRCL) are up more than +5%. Veeva Systems (VEEV) is up more than +17% after reporting Q2 adjusted EPS of $2.35, above the consensus of $2.22, and raising its 2027 adjusted EPS forecast to $9.21 from a previous forecast of $9.05, stronger than the consensus of $9.06. Nutanix (NTNX) is up more than +6% after reporting Q4 revenue of $757.1 million, better than the consensus of $738.1 million. Dollar General (DG) is up more than +5% after reporting Q2 net sales of $11.29 billion, stronger than the consensus of $11.19 billion, and raising its 2027 comparable sales forecast to up +2.5% to +2.9% from a previous forecast of +2.2% to +2.7%, higher than the consensus of +2.42%. Wendy’s (WEN) is down more than -13% after Reuters reported that Trian Fund Management has no plans to make a bid at this time to take the company private. Hormel Foods (HRL) is down more than -8% to lead losers in the S&P 500 after reporting Q3 net sales of $2.96 billion, below the consensus of $3.03 billion, and cutting its full-year net sales forecast to $12.1 billion to $12.2 billion from a previous forecast of $12.2 billion to $12.5 billion, weaker than the consensus of $12.24 billion. HP Inc. (HPQ) is down more than -4% after forecasting Q4 adjusted EPS of 69 cents to 79 cents, the midpoint above the consensus of 67 cents, but without an 8-cent-per-share boost from tariff refunds, the outlook would be below consensus. Dollar Tree (DLTR) is down more than -2% after forecasting Q3 net sales of $5.0 billion to $5.1 billion, the midpoint below the consensus of $5.06 billion. Earnings Reports (8/27/2026) Affirm Holdings Inc (AFRM), Autodesk Inc (ADSK), Best Buy Co Inc (BBY), Burlington Stores Inc (BURL), Dollar General Corp (DG), Dollar Tree Inc (DLTR), Elastic NV (ESTC), Forgent Power Solutions Inc (FPS), Gap Inc/The (GAP), Hormel Foods Corp (HRL), IREN Ltd (IREN), Marvell Technology Inc (MRVL), Rubrik Inc (RBRK), SentinelOne Inc (S), Ulta Beauty Inc (ULTA), Workday Inc (WDAY). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

The S&P 500 Index ($SPX) (SPY) is up by +0.39% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.84%.  E-mini S&P futures (ESU26) are up +0.30%, and September E-mini Nasdaq futures (NQU26) are up +0.71%. Stock indices are moving higher today, with the S&P 500 and Nasdaq 100postign 1-week highs.  Stellar earnings from Nvidia are powering technology stocks higher today. Nvidia is up more than +6%, leading chipmakers and AI-infrastructure stocks higher after issuing a revenue growth forecast for fiscal 2028 far above expectations.  Also, a $31 billion joint venture between Sandisk and Kioxia Holdings to ratchet up flash memory production added to the bullish tone in technology stocks.  In addition, cybersecurity stocks are stronger today after better-than-expected earnings from Okta and CrowdStrike Holdings, and software stocks are climbing after Salesforce forecast Q3 revenue above consensus. Warren Buffett Says Peter Thiel Can Quit Giving Pledge If It’s Too ‘Woke’ for Him — ‘A Lot of Reasons Why Rich People Don’t Like Other Rich People’ Elon Musk Says We’re ‘1000% Going to Go Bankrupt’ Without Al and Robots — ‘We’re Totally Screwed’ as Interest on National Debt Tops $1 Trillion Nvidia Reports $7.8 Billion in Q2 Gains on Equity Portfolio That Includes SpaceX, Intel, CoreWeave, and More Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Signs of strength in the US labor market are positive for economic growth and stocks after weekly initial unemployment claims unexpectedly fell -4,000 to 203,000, showing a stronger labor market than expectations of an increase to 208,000. Comments today from Kansas City Fed President Jeff Schmid were hawkish and bearish for stocks and bonds when he said current Fed policy is not restraining the economy at a time when inflation continues to run above its 2% target. He added that the interest rate setting "might be accommodative on the short end" and that "we've got work to do." Oct WTI crude oil prices (CLV26) are moving higher today on a Bloomberg report that said Russia was planning to escalate the war in Ukraine, which could disrupt Russian crude output and lower global oil supplies.  Crude prices fell to a 2-week low on Wednesday after Iran’s military said it reached a revenue-sharing agreement with Oman on the reopening of the Strait of Hormuz.  Crude prices have fallen more than -8% this week on signs of easing tensions in the Middle East and a partial resumption of crude supplies through the Strait of Hormuz. On Tuesday, The New York Times reported the US State Department is preparing to send US diplomats back to embassies in the Middle East that were evacuated before and during the war with Iran, suggesting that the Trump administration does not anticipate a return to all-out hostilities with Iran. The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence.  AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.  So far, earnings results have been positive, with 86% of the 478 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data. The markets are discounting a 35% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16. Overseas stock markets are mixed today.  The Euro Stoxx 50 is down -0.23%.  China's Shanghai Composite climbed to a 1-week high and closed up +1.13%.  Japan's Nikkei-225 Stock Average fell from a 1-week high and closed down -0.20%. Interest Rates September 10-year T-notes (ZNU6) are unchanged today.  The 10-year T-note yield is unchanged at 4.660%.  T-notes are little changed today amid strength in stocks, which is curbing safe-haven demand for government debt securities.  Supply pressures are negative for T-notes as the Treasury will auction $44 billion of 7-year T-notes later today.  In addition, an unexpected decline in weekly US jobless claims is bearish for T-notes.  Finally, hawkish comments today from Kansas City Fed President Jeff Schmid undercut T-notes when he said current Fed policy isn’t in restrictive territory. European government bond yields are mixed today.  The 10-year German bund yield is up +1.7 bp to 3.251%. The 10-year UK gilt yield is down -0.1 bp to 5.030%. Eurozone July M3 money supply rose +3.4% y/y, weaker than expectations of +3.5% y/y. The German Sep GfK consumer confidence index rose +2.8 to a 6-month high of -26.6, stronger than expectations of -29.5. Markets are discounting a 97% chance of a +25 bp ECB rate hike at its next policy meeting on September 10. US Stock Movers Chipmakers and AI-infrastructure stocks are rallying today after Nvidia reported Q2 revenue of $96.22 billion, well above the consensus of $92.38 billion, and projected fiscal 2028 revenue to grow about 70%. The iShares Semiconductor ETF (SOXX) is up %.  Nvidia (NVDA) is up more than +7% and ARM Holdings (ARM) is up more than +5%.  Also, Intel (INTC) and Broadcom (AVGO) are up more than +2%, and Lam Research (LRCX), Sandisk (SNDK), and Marvel Technology (MRVL) are up more than +1%. Software stocks are moving higher today, led by a +18% jump in Salesforce (CRM) to lead gainers in the Dow Jones Industrials after it forecasted Q3 revenue of $11.42 billion to $11.50 billion, with the midpoint above the consensus of $11.42 billion. Also, Datadog (DDOG) and ServiceNow (NOW) are up more than +7%, and Atlassian Corp (TEAM) is up more than +5%.  In addition, Adobe Systems (ADBE), Autodesk (ADSK), Palantir Technologies (PLTR), and Workday (WDAY) are up more than +3%, and Oracle (ORCL) is up more than +1%. Cybersecurity stocks are stronger today, following stellar earnings results from Okta and Crowdstrike Holdings.  Okta (OKTA) is up more than +23% after boosting its 2027 revenue forecast to $3.22 billion to $3.23 billion from a previous forecast of $3.19 billion to $3.21 billion, above the consensus of $3.20 billion.  Crowdstrike Holdings (CRWD) is up more than +14% to lead gainers in the Nasdaq 100 after raising its 2027 adjusted operating income forecast to $1.50 billion-$1.51 billion from a previous forecast of $1.45 billion-$1.48 billion, better than the consensus of $1.47 billion.  Also, Palo Alto Networks (PANW) and Zscaler (ZS) are up more than +9%, and SentinelOne (S) is up more than +7%. In addition, Cloudflare (NET) and Fortinet (FTNT) are up more than +4%. Veeva Systems (VEEV) is up more than +17% to lead gainers in the S&P 500 after reporting Q2 adjusted EPS of $2.35, above the consensus of $2.22, and raising its 2027 adjusted EPS forecast to $9.21 from a previous forecast of $9.05, stronger than the consensus of $9.06. Nutanix (NTNX) is up more than +6% after reporting Q4 revenue of $757.1 million, better than the consensus of $738.1 million. Dollar General (DG) is up more than +4% after reporting Q2 net sales of $11.29 billion, stronger than the consensus of $11.19 billion, and raising its 2027 comparable sales forecast to up +2.5% to +2.9% from a previous forecast of +2.2% to +2.7%, higher than the consensus of +2.42%. Wendy’s (WEN) is down more than -12% after Reuters reported that Trian Fund Management has no plans to make a bid at this time to take the company private. Hormel Foods (HRL) is down more than -7% to lead losers in the S&P 500 after reporting Q3 net sales of $2.96 billion, below the consensus of $3.03 billion, and cutting its full-year net sales forecast to $12.1 billion to $12.2 billion from a previous forecast of $12.2 billion to $12.5 billion, weaker than the consensus of $12.24 billion. HP Inc. (HPQ) is down more than -5% after forecasting Q4 adjusted EPS of 69 cents to 79 cents, the midpoint above the consensus of 67 cents, but without an 8-cent-per-share boost from tariff refunds, the outlook would be below consensus. Dollar Tree (DLTR) is down more than -2% after forecasting Q3 net sales of $5.0 billion to $5.1 billion, the midpoint below the consensus of $5.06 billion. Earnings Reports (8/27/2026) Affirm Holdings Inc (AFRM), Autodesk Inc (ADSK), Best Buy Co Inc (BBY), Burlington Stores Inc (BURL), Dollar General Corp (DG), Dollar Tree Inc (DLTR), Elastic NV (ESTC), Forgent Power Solutions Inc (FPS), Gap Inc/The (GAP), Hormel Foods Corp (HRL), IREN Ltd (IREN), Marvell Technology Inc (MRVL), Rubrik Inc (RBRK), SentinelOne Inc (S), Ulta Beauty Inc (ULTA), Workday Inc (WDAY). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

(Bloomberg) -- Wall Street is eagerly anticipating Nvidia Corp.'s (NVDA) earnings on Wednesday afternoon, not so much for what the numbers will say about the chip giant, but for what they mean to artificial intelligence investors and the market itself. Most Read from Bloomberg Lutnick's Intervention in Canada Talks Draws Praise, Blame Apple Gears Up to Launch Its First New Mac Mini in Two Years Xi Signals Defiance as US Threatens Sanctions Over Iran Help US Weighs More Trade Measures Against Canada After Retaliation Bessent's Mentor Druckenmiller Calls Bond Buying a Mistake "Nvidia is the best barometer for AI spending," said Rob Conzo, chief executive officer of the Wealth Alliance, which owns Nvidia shares in several portfolios. "It will help determine if hyperscalers are still accelerating, from an infrastructure perspective, or if they're becoming more disciplined." The company's shares have been on a wild ride this year, sinking through the winter, then soaring through the spring, and bouncing around all summer. They're coming off a seven-day losing streak, matching the longest since 2019, in which they lost 7.5%. And that follows a 19% leap from late July through mid-August. All told, Nvidia is up 14% in 2026, a decent showing but still a far cry from its past performance. At this time last year, the stock had gained 34%, and in 2024 it was soaring more than 150%. The reason is hardly a secret, with investors increasingly cautious about the durability of the AI trade with inflation remaining high, interest rates rising and geopolitical risks all over the place, whether it's the US's military and economic war with Iran or its trade war with Canada. The tech-heavy Nasdaq 100 Index suffered its worst month in more than a year in July, falling 6.6% as investors dumped the shares of companies exposed to the AI buildout amid concerns about how much longer the heavy spending would last. But since its July 29 trough, the index has regained much of that lost ground, led by memory and storage companies like Sandisk Corp. and chipmakers such as Marvell Technology Inc. Wall Street expects Nvidia to deliver stellar results for the fiscal second quarter, which ended July 31. Analysts project that revenue nearly doubled from a year ago, which would be the fastest pace in two years, as did net income, according to data compiled by Bloomberg. That, however, isn't what the market is focused on. Rather, investors want to hear what Chief Executive Officer Jensen Huang has to say about capital spending by its biggest customers, future demand and a spate of new financing deals that involve Nvidia. Price increases will also be top of mind after some of the company's customers were told that the cost of servers with its AI chips will rise more than 15% in some cases, due to surging memory costs. "This will be a very interesting report, but it isn't so much about the numbers," Conzo said. "The forward guidance discussions will be far more in view." Earlier this month, Nvidia said it's partnering with Wall Street firms including Goldman Sachs Group Inc., BlackRock Inc. and Apollo Global Management Inc. to provide $500 billion in financing for AI infrastructure. Nvidia also agreed to spend as much as $105 billion to back a data center campus in Ohio that will be leased by OpenAI. "They're going to need to discuss those two big partnerships or agreements in good detail and sort of calm the market's fears around the circularity of financing," said Shaon Baqui, a senior equity analyst at Janus Henderson, which holds a substantial position in Nvidia. The big questions from investors are how much of Nvidia's revenue is being driven by its own financing and if it's creating or bringing forward demand. Huang's comments alone likely won't be enough to resolve some of the issues the market is having with AI investments at the moment, according to Daniel Pilling, portfolio manager at Sands Capital Management, which owns the stock. "It's going to be a really important quarter for them, not because of what they're doing on the balance sheet, but what they're doing off the balance sheet," said Brian Mulberry, chief market strategist at Zacks Investment Management, which holds Nvidia shares. "It effectively makes Jensen Huang kind of like the pope of AI. He gets to bless any of these deals." Even with a market capitalization of more than $5 trillion, the biggest in the world, Nvidia's equity valuation has been steadily eroding this year. At roughly 19 times earnings expected over the next 12 months, the stock is close to the cheapest it has been since late 2018, before AI exploded and when the chipmaker's market value was less than $100 billion. "Nvidia isn't the most exciting part of the market, or even the AI trade, anymore," said Randy Hare director of equity research at Huntington National Bank, which owns the stock. "Right now the tightness is in the memory space, the optical area, energy. Momentum is shifting from semis to other parts of infrastructure, and from there it could shift to hyperscalers again." In terms of trading into the earnings, Nvidia shares haven't performed well after its results over the last few quarters, falling the day after five of its last six reports, according to data compiled by Bloomberg. The options market is pricing in a roughly 5% swing in either direction. Of course, the shares could get a boost from a strong report and forecasts that calm investors' nerves, potentially reinvigorating the broader AI trade. Wall Street will be listening for updates on Nvidia's Vera Rubin and Blackwell chip sales as well as its outlook for gross margins. "Their stock in my view is at a bit of a nexus, like a bit of a turning point," said Melissa Otto, head of technology, media and telecommunications research at Visible Alpha. "We're going to get a lot more visibility, hopefully, and commentary around Rubin and the performance of Blackwell." Tech Chart of the Day Top Tech Stories Meta Platforms Inc. and state attorneys general have discussed a possible mid-trial settlement of a blockbuster case accusing the company of deliberately designing Facebook and Instagram to addict teens, people familiar with the matter said. OpenAI said that its new Jalapeno chips performed better than Nvidia's current lineup during testing, underscoring the company's progress developing AI processors in-house. SoftBank Group Corp. is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in US tech giant OpenAI, according to people familiar with the matter. Apple announced upgraded Mac mini and Mac Studio desktop computers, giving the in-demand machines major processor upgrades. Earnings Due Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Diamond Industry's Old Guard Wants You to Buy 'Natural' Plus-Size Clothes Are Disappearing at Retailers in GLP-1 Era Drones, Balloons and Sound Waves: New Ways to Fight the World's Fires Moldy Peanuts Can Be Deadly. The Solution Is More Mold New York's Israeli Restaurants Are Doing Better Than You Might Think ©2026 Bloomberg L.P.