Stocks ease as Nvidia’s reaction shifts focus from results to AI outlook.
U.S. stocks finished mixed Thursday as markets digested Nvidia’s (NVDA) latest earnings and reassessed the broader outlook for artificial intelligence demand. The Nasdaq 100 fell 1.16% and the S&P 500 slipped 0.54%, while the Dow held near flat at +0.03%.
Despite posting strong quarterly results and guidance above expectations, Nvidia shares dropped more than 5%, signaling investors may now be focusing less on past performance and more on how sustainable AI spending will be over time.
Part of the cautious reaction stemmed from limited detail in Nvidia’s outlook, particularly regarding future revenue drivers and exposure to China. That uncertainty prompted questions about competitive pressure and whether current levels of AI infrastructure investment can be maintained.
Recent weeks have seen markets swing between enthusiasm and skepticism toward AI-linked companies. Concerns about disruption to legacy software firms have fueled volatility, though some names such as Salesforce (CRM) stabilized after management addressed guidance concerns.
Macro data also added to the cautious tone. Initial jobless claims ticked slightly higher, hinting at a slowing but still resilient labor market. Investors are now watching upcoming wholesale inflation data for clearer signals on interest-rate expectations.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
Dell Targets $50B AI Revenue in FY2027 After Record Year
Dell Technologies (DELL) closed FY2026 with record results, delivering $113.5B in revenue (+19% YoY) and $10.30 in EPS (+27%), driven by surging AI momentum with $64.1B in AI orders, $25.2B in shipments, and a record $43B AI backlog exiting the year; for FY2027, management is targeting $50B in AI revenue, implying roughly 100% year-over-year growth, alongside total revenue guidance of $138B–$142B and mid-40% growth in its Infrastructure Solutions Group, while AI server profitability is expected to remain in the mid-single-digit range despite memory cost inflation such as DRAM and ongoing supply tightness, with the company prioritizing supply security first and dynamic pricing to protect margins amid sustained AI demand.
Figs Targets $700M Revenue in 2026 While Expanding Margins and Global Footprint
FIGS (FIGS) closed 2025 with strong momentum as Q4 revenue surged 33% YoY to $201.9M, marking its first-ever $200M quarter, driven by active customers surpassing 2.9 million and a 9% increase in average order value to $126, and management is guiding for 10%–12% revenue growth in 2026 toward nearly $700M alongside adjusted EBITDA margin expansion to 12.7%–12.9% and operating margin of 7.6%–7.9%, supported by product innovation such as FIBREx, 55% YoY international growth, and four new community hub openings, while remaining cautious about tariff headwinds estimated at roughly 280 basis points and ongoing inventory management discipline.
Intuit Reaffirms 12–13% Revenue Growth for 2026 While Expanding AI Platforms
Intuit (INTU) reported Q2 revenue of $4.7B (+17% YoY) and non-GAAP EPS of $4.15, while reaffirming FY2026 revenue growth guidance of 12%–13% to approximately $21B, supported by 18% growth in its Global Business Solutions segment, 21% expansion in the online ecosystem, rapid adoption of AI and Human Intelligence solutions, a strategic multiyear partnership with Anthropic, and the rollout of AI-native ERP offerings for the mid-market, and although analysts continue to question AI disruption risks, Mailchimp’s slower recovery, and data security concerns, management remains confident that its regulatory positioning, proprietary data moat, and integrated AI-HI model will sustain long-term growth and margin expansion.
📅 Earnings Watch
Markets are entering a phase where strong earnings alone may not be enough. Guidance clarity, capital spending outlook, and macro signals are increasingly shaping investor reactions.
Watch how AI leaders trade after results, not just what they report.
What stocks are you watching today?
