Earnings

Hewlett Packard Enterprise shares jumped 30% following robust Q2 earnings that significantly beat analyst expectations. Strong demand for AI servers fueled this surge, with server revenue reaching $5.45 billion. HPE raised its full-year EPS guidance considerably, projecting fiscal year 2026 EPS between $3.35 and $3.45, placing them two years ahead of previous long-term projections.

The market favors a “Don’t Think, Just Do” approach, aligning with bullish trends. Strong earnings, not just multiple expansion, drive leading stocks like Dell Technologies, which is benefiting from the AI spending boom. Despite significant price surges, Dell’s valuation remains attractive due to upward earnings revisions, mirroring Nvidia’s AI-fueled growth. Investors are advised caution, waiting for consolidation before new entries, while recognizing the AI sector’s continued upside.

Dell’s strong earnings report is fueling optimism in the data center trade, potentially shifting market focus from AI infrastructure to broader computing power demand. Nvidia’s upcoming Computex keynote, alongside executives from other AI chip players like Arm and Qualcomm, will be critical for insights into AI’s PC integration. The week also features earnings from Dollar General, Palo Alto Networks, Ulta Beauty, Medtronic, Broadcom, CrowdStrike, Five Below, Ciena, and Lululemon, culminating in the crucial jobs report influencing Fed rate cut expectations.

Okta beat fiscal Q1 expectations, with revenue up 11% driven by strong demand for identity security amid the rise of agentic AI. The company reported adjusted EPS of 91 cents on $765 million revenue. CEO Todd McKinnon highlighted AI’s role as a growth catalyst, emphasizing Okta’s long-term strategy to provide foundational security infrastructure for future AI deployments. Okta is enhancing offerings like “Okta for AI agents” to address security needs arising from AI expansion.

Salesforce exceeded Q1 revenue and earnings estimates. However, its full-year guidance slightly missed analyst expectations, citing headwinds in marketing and commerce, plus impacts from acquisitions like Informatica. Despite a recent share price decline, the company highlighted strong growth in its AI-powered Agentforce and confidence in Slack’s future potential.

Nvidia reported strong revenue growth driven by AI demand but saw its stock dip post-earnings for the fourth consecutive quarter. The company is strategically conceding China’s AI chip market to Huawei due to geopolitical tensions. Nvidia is rebranding as a computing platform beyond GPUs, expanding into CPUs with a projected $20 billion revenue this year. Other tech news includes a surge in quantum computing investment, Anthropic’s rapid revenue growth, OpenAI’s IPO preparations, and AMD’s significant investment in Taiwan.

Workday shares surged after reporting Q1 earnings beat expectations and upgrading its full-year operating margin forecast. The enterprise software company exceeded revenue and adjusted EPS estimates, with subscription revenue growing robustly. A key positive was the increased full-year operating margin outlook to 30.5%, signaling management confidence. Workday’s AI strategy, including its “Sana” agents, is gaining traction with over 4,000 active users and rapidly approaching $500 million in annualized revenue. This performance comes after a challenging period for the stock, with a renewed focus on transformative AI solutions.

Cisco shares surged 17% after reporting Q3 results exceeding Wall Street expectations, with revenue up 12% year-over-year. The company anticipates $5.3 billion in AI infrastructure and hyperscaler orders year-to-date, revising its full-year AI order forecast to $9 billion. Cisco also announced workforce reductions impacting fewer than 4,000 employees as a strategic move to reinvest in high-growth AI areas.

Tencent reported a 9% revenue increase in Q1 2026, missing analyst expectations. While domestic game revenue grew 6%, it decelerated from the previous year. The company highlighted AI as a key strategic focus, with AI-driven advancements boosting core businesses and generating cash flow for further AI investment. Financial technology and business services showed strong performance, particularly cloud and AI-specific services. Advertising revenue also saw a significant 20% surge, partly attributed to AI. Gaming revenue slowdown was linked to holiday timing shifts.

The Nasdaq is projected to reach 30,000 points in the next year, driven by strong earnings validating the AI investment thesis. Dan Ives anticipates this rally, fueled by a “memory super-cycle,” to last at least two more years, highlighting demand for chips, software, and infrastructure. While some, like Michael Burry, warn of dot-com bubble parallels, the broad gains in chip and tech stocks suggest significant ongoing growth in AI infrastructure.