Nvidia, Salesforce earnings shatter bear narratives
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- Salesforce stock surged 22% and Nvidia rose 8% after both reported better-than-expected quarterly results Wednesday evening, with Salesforce erasing most of a 22% year-to-date decline
- Salesforce delivered its strongest sales growth in four years, with seats growing year-over-year across sales, service, and Slack products, customer attrition near historic lows, and bookings for AI-focused bundles more than doubling from the prior quarter
- Salesforce expanded its partnership with Anthropic through 'Claudeforce,' letting Claude users tap Salesforce data for tasks like composing emails and updating records
- Nvidia indicated revenue could grow roughly 70% in fiscal 2028, well above the ~45% growth Wall Street had expected
- Nvidia's customer base has diversified, with hyperscalers now accounting for roughly half its business and sovereign AI projects, neoclouds, and other customers making up the rest, while its Vera Rubin platform remains on schedule
- Amazon Web Services plans to buy 2 million Nvidia GPUs and potentially millions of its new Vera CPUs, despite developing its own AI chips
Why it matters: Short sellers betting against Nvidia and Salesforce got crushed as both companies posted numbers that directly contradicted core bear theses. Nvidia's roughly 70% fiscal 2028 revenue growth guidance — about 25 points above Wall Street's ~45% expectation — shows AI infrastructure demand remains far stronger than skeptics had modeled, while Salesforce's Claudeforce partnership with Anthropic demonstrates software incumbents can monetize AI rather than be displaced by it.
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