Nutanix Partners with AMD, Stock Surges Despite Revenue Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy CRM?
Source: seekingalpha
- Earnings Beat: Nutanix reported Q2 revenue of $723 million, a 10% year-over-year increase that exceeded expectations, despite guiding Q3 and FY2026 revenues below consensus, indicating strong performance in the AI infrastructure sector.
- Strategic Partnership: The multi-year partnership with AMD aims to develop an open, full-stack AI infrastructure platform, expected to integrate AMD's EPYC CPUs and Instinct GPUs, enhancing Nutanix's competitiveness in data centers and edge computing markets.
- Investment Signal: AMD's commitment to invest $150 million in Nutanix stock at $36.26 per share, along with up to $100 million for joint R&D, not only validates Nutanix's market position but may also create a “halo effect” that mitigates the impact of supply chain challenges.
- Future Outlook: Despite revenue timing delays, Nutanix anticipates launching its first joint platform with AMD by late 2026, which will lay the groundwork for future growth, particularly in the rapidly evolving AI market.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 185.420
Low
223.00
Averages
326.40
High
405.00
Current: 185.420
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Expectations: The company anticipates quarterly revenue of $11.18 billion, up 11.9% from $9.99 billion a year ago, indicating strong business growth potential.
- Historical Performance: Salesforce has exceeded analyst revenue estimates in seven out of the last ten quarters, although it missed in the most recent third quarter, which may impact market confidence.
- Stock Price Movement: Salesforce shares rose 4.1% to close at $185.42 on Tuesday, reflecting investor optimism ahead of the earnings report.
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- Earnings Beat: Nutanix reported Q2 revenue of $723 million, a 10% year-over-year increase that exceeded expectations, despite guiding Q3 and FY2026 revenues below consensus, indicating strong performance in the AI infrastructure sector.
- Strategic Partnership: The multi-year partnership with AMD aims to develop an open, full-stack AI infrastructure platform, expected to integrate AMD's EPYC CPUs and Instinct GPUs, enhancing Nutanix's competitiveness in data centers and edge computing markets.
- Investment Signal: AMD's commitment to invest $150 million in Nutanix stock at $36.26 per share, along with up to $100 million for joint R&D, not only validates Nutanix's market position but may also create a “halo effect” that mitigates the impact of supply chain challenges.
- Future Outlook: Despite revenue timing delays, Nutanix anticipates launching its first joint platform with AMD by late 2026, which will lay the groundwork for future growth, particularly in the rapidly evolving AI market.
See More
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- Earnings Release Date: Salesforce is set to release its Q4 earnings after the market closes on February 25, with analysts forecasting earnings of $3.04 per share, representing a 9.36% increase from $2.78 in the same quarter last year.
- Revenue Expectations: The company anticipates quarterly revenue of $11.18 billion, up 11.9% from $9.99 billion a year ago, indicating strong business growth potential.
- Historical Performance: Salesforce has exceeded analyst revenue estimates in seven out of the last ten quarters, although it missed in the most recent third quarter, which may impact market confidence.
- Stock Price Movement: Salesforce shares rose 4.1% to close at $185.42 on Tuesday, reflecting investor optimism ahead of the earnings report.
See More
U.S. Stock Futures Fluctuate, Economic Data in Focus
- Economic Data Focus: Market participants are set to evaluate the initial jobless claims report due Thursday, which is expected to influence investor confidence in economic recovery and subsequently affect stock market volatility.
- Bond Yield Dynamics: The 10-year Treasury bond yield stands at 4.05%, while the two-year bond yield is at 3.47%, indicating market expectations regarding future interest rate policies that could impact investors' asset allocation decisions.
- Divergent Stock Performances: Nvidia (NASDAQ:NVDA) rose 1.28% after reporting better-than-expected fourth-quarter results and issuing optimistic first-quarter sales guidance, while Salesforce (NYSE:CRM) fell 3.94% due to future estimates falling short of Wall Street expectations, highlighting varying investor confidence across companies.
- Analyst Insights: BlackRock maintains an overweight stance on U.S. equities, citing a favorable macro backdrop, although they caution about long-term fiscal health risks, suggesting investors should also monitor emerging return drivers like geopolitical fragmentation beyond the technology sector.
See More
Stock Market Movers: Nvidia, Sandisk, Salesforce, C3.ai, IonQ, Nutanix, and Others
- Stock Market Trends: Stock futures were declining on Thursday, indicating a downturn in the market.
- Nvidia's Earnings Impact: Nvidia's strong fourth-quarter earnings report was not enough to maintain the recent rebound in the tech sector.
See More
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- Earnings Beat: Nutanix reported Q2 revenue of $723 million, a 10% year-over-year increase that exceeded expectations, despite guiding Q3 and FY2026 revenues below consensus, indicating strong performance in the AI infrastructure sector.
- Strategic Partnership: The multi-year partnership with AMD aims to develop an open, full-stack AI infrastructure platform, expected to integrate AMD's EPYC CPUs and Instinct GPUs, enhancing Nutanix's competitiveness in data centers and edge computing markets.
- Investment Signal: AMD's commitment to invest $150 million in Nutanix stock at $36.26 per share, along with up to $100 million for joint R&D, not only validates Nutanix's market position but may also create a “halo effect” that mitigates the impact of supply chain challenges.
- Future Outlook: Despite revenue timing delays, Nutanix anticipates launching its first joint platform with AMD by late 2026, which will lay the groundwork for future growth, particularly in the rapidly evolving AI market.
See More
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- Dividend Increase: Salesforce has declared a quarterly dividend of $0.44 per share, marking a 5.8% increase from the previous $0.42, indicating ongoing improvements in profitability and cash flow, which bolsters investor confidence.
- Yield Metrics: The forward yield of this dividend stands at 0.92%, reflecting the company's commitment to providing stable returns while appealing to income-seeking investors in a competitive market.
- Payment Details: The dividend is payable on April 23, with a record date of April 9 and an ex-dividend date also set for April 9, ensuring shareholders receive timely returns and reinforcing shareholder relations.
- Future Projections: Salesforce targets $63 billion in revenue by FY30 while planning a $50 billion stock buyback, demonstrating confidence in future growth and a strong commitment to enhancing shareholder value.
See More
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- Significant Stock Decline: Trade Desk's stock fell nearly 17% in Thursday's premarket, leading a post-earnings slide in software shares, reflecting heightened market concerns over AI-driven disruptions that prompted investor sell-offs.
- Weak Sales Forecast: The company projected fiscal first-quarter sales below analysts' expectations, and despite reporting fourth-quarter revenue and adjusted profit in line with targets, the stock's sharp decline indicates a lack of confidence in future growth prospects.
- Competitor Performance: Salesforce shares dropped 3.7%, although it provided a higher-than-expected first-quarter revenue outlook and announced a $50 billion buyback plan, the overall market sentiment remains low, highlighting ongoing pressures in the software sector.
- Retail Sentiment Turns Bullish: Despite Trade Desk's poor performance, with shares down about 71% over the past 12 months, retail sentiment on Stocktwits for TTD, CRM, SNOW, and SNPS has turned 'extremely bullish', indicating investor optimism for future recovery.
See More
