Earnings

Nintendo reported strong fiscal first-quarter earnings, exceeding revenue and profit expectations despite a decline in Switch 2 console sales. Robust software sales and the success of “The Super Mario Galaxy Movie” bolstered performance. The company reaffirmed its annual forecast, demonstrating confidence in continued success through strategic pricing and new game releases.

Despite exceeding analyst expectations with strong revenue growth, AMD’s stock fell due to investor caution. The chipmaker’s data center segment surged, driven by AI hardware demand. While AMD’s CEO sees significant growth opportunities, some investors had higher expectations, leading to market apprehension. Analysts suggest the dip may present a buying opportunity.

Pinterest’s stock fell 7% despite beating Q2 earnings and revenue estimates. This decline was driven by a cautious Q3 revenue forecast, influenced by the shift of Amazon’s Prime Day and World Cup spending. The company reported strong user growth and progress in AI integration, leveraging open-source models to manage costs effectively. Adjusted EBITDA and global monthly active users also exceeded expectations.

AMD surpassed Q2 earnings and revenue expectations, driven by strong Data Center segment growth fueled by AI chip demand. Despite a stock stumble amidst AI race dynamics, AMD projects robust Q3 revenue and anticipates significant market share gains with its AI accelerators and integrated systems like Helios, challenging competitors.

Palantir Technologies exceeded Q2 earnings expectations, driven by a more than doubling of its commercial revenue. This strong performance led to a significant stock surge. CEO Alex Karp highlighted the unprecedented scale of growth, particularly in the U.S. commercial sector, which saw a 149% year-over-year increase. The company raised its full-year revenue guidance, projecting continued momentum for at least 18 months.

Snap Inc. beat Q2 revenue and earnings expectations, signaling a potential turnaround. Global Daily Active Users reached 493 million, and ARPU increased. The advertising business rebounded, driven by large advertisers and international growth. Strategic investments in AI and AR are underway, with new AR glasses set to launch. This performance contrasts with challenges faced by competitors like Meta and Reddit.

Palantir’s stock rose 20% after reporting “otherworldly” Q2 earnings, driven by strong AI sovereignty demand. Revenue surged 93% year-over-year to $1.94 billion, beating expectations. Commercial revenue jumped 149%, and government revenue grew 90%. The company raised full-year guidance, projecting strong commercial growth. CEO Alex Karp highlighted the “sovereign AI revolution” as a key driver, noting unprecedented growth for a company at their scale.

Coinbase shares fell after reporting a wider-than-expected second-quarter loss. Revenue declined year-over-year, missing analyst forecasts due to the ongoing “crypto winter” and challenging macroeconomic conditions. Despite a tough trading environment, subscription revenue showed promise as Coinbase diversifies. The company, however, saw a decrease in stablecoin revenue, highlighting ongoing sector headwinds.

Apple reported a strong fiscal third quarter, exceeding revenue and EPS expectations. Despite impressive performance, escalating memory chip prices are a significant headwind. Price increases on MacBooks and iPads were implemented. New CEO John Ternus will take over on September 1st, coinciding with the iPhone launch event. Apple Intelligence and AI strategy, including revamped Siri, are key future drivers. The company anticipates continued memory cost increases in the near future but remains focused on its strong ecosystem and strategic AI investments.

Semiconductor stocks saw a significant rally Thursday, driven by strong earnings from Microsoft and Lam Research, particularly in AI. Lam Research jumped 18% on AI-fueled demand, while Microsoft climbed 15% due to robust Azure growth. Memory chip stocks also rose, with Samsung’s shortage warning boosting Micron and Sandisk. The sector, crucial for AI infrastructure, rebounded after a recent correction, reflecting renewed investor confidence. Arm Holdings also gained on strong demand for its new chip.