Nvidia stock dips as Intel promotes SambaNova AI accelerator

Key Takeaways

• Nvidia's stock dipped despite strong Q4 earnings and optimistic FY2027 guidance, reflecting investor scrutiny over sustained AI growth.
• Amplitude's stock dropped 41% year-to-date, but the company launched an Agentic AI Analytics platform, announced a $100 million share buyback, and holds $192 million in cash.
• ServiceNow's Now Assist generative AI suite is on track to achieve $1 billion in annual contract value, demonstrating strong AI growth potential.
• Salesforce is enhancing its CRM with Data 360 to serve as a master record for AI agents, positioning itself for the AI era.
• Arista Networks, a key provider for AI data centers, reported a nearly 29% jump in full-year revenue and expects continued strong growth.
• WPP is merging ad agencies and cutting jobs to achieve £500 million in annual savings by 2028, aiming to become a simpler, AI-enabled business.
• Gushwork, an India-founded startup, raised $9 million in seed funding for its AI-powered search platform, which generates customer leads and accounts for 40% of inbound leads.
• Intel is partnering with community colleges for AI workforce development and promotes the SambaNova SN50 AI accelerator, claiming it is five times faster than Nvidia's B200.
• Analysts suggest fears of AI disruption are overblown for many software and legal tech firms, with some stocks now appearing undervalued.
• Indian IT stocks face sharp declines due to global AI disruption concerns, posing long-term challenges to their labor arbitrage business model.

Dow Rises Amid Mixed Market as Nvidia Stock Dips

The US stock market showed a split on Thursday, with the Dow Jones Industrial Average gaining 174 points while the Nasdaq and S&P 500 fell. This happened after Nvidia's stock dropped over 2% despite strong earnings, leading investors to question the future of AI growth. Jobless claims fell to 212,000, suggesting a cooling labor market. Traders are now waiting for inflation data.

Nvidia Earnings Disappoint, Stocks Tumble

US stocks dropped on Thursday as investors reacted to Nvidia's earnings report. The Dow Jones fell about 1%, and the S&P 500 and Nasdaq also declined. Nvidia's earnings were strong but didn't meet extremely high expectations, and its future guidance fell slightly short of some forecasts. This caused Nvidia's shares to sell off and created uncertainty in the tech sector, which has been heavily influenced by AI optimism.

Mixed Market: Dow Climbs, Nasdaq and S&P 500 Slip After Nvidia Report

US stocks showed mixed movement on Friday, with the Dow Jones Industrial Average rising while the S&P 500 and Nasdaq Composite edged lower. This followed Nvidia's strong earnings report, though its stock dipped as investors reviewed the company's outlook. The AI trade has been a major market driver, and Nvidia's results are being watched for signs of its sustainability. Economic data showed lower Producer Price Index but subdued consumer sentiment.

Amplitude Stock Drops 41% Amid AI Software Sell-Off

Software stocks have fallen sharply this year, with Amplitude down 41% year-to-date. Despite this, Amplitude's revenue growth has improved, reaching 17% in the fourth quarter, and the company reported record free cash flow. Amplitude recently launched its Agentic AI Analytics platform, which uses user behavior data and is seeing rapid adoption. The company also announced a $100 million share buyback, and with $192 million in cash, the stock appears undervalued.

ServiceNow and Salesforce Poised for AI Growth Despite Software Sell-Off

Despite a significant sell-off in software stocks, ServiceNow and Salesforce are positioned to benefit from the AI era. ServiceNow's platform connects siloed departments, providing clean data crucial for AI, and its generative AI suite, Now Assist, is on track to reach $1 billion in annual contract value. Salesforce, a leader in CRM, has enhanced its data unification with Data 360, setting it up as a master record for AI agents. Both companies are trading at attractive valuations.

Nvidia's Strong Results Ease AI Bubble Fears

Nvidia reported strong fourth-quarter results and provided optimistic guidance for fiscal year 2027. These positive outcomes helped to ease recent market concerns that the boom in AI spending might be an unsustainable bubble. The company announced record sales and indicated that demand is expected to continue growing rapidly.

Arista Networks Stock Poised for 33% Jump

Arista Networks, a key provider of networking solutions for AI data centers, is expected to see strong growth despite supply challenges. The company's fourth-quarter 2025 results showed a nearly 29% jump in full-year revenue. Arista has raised its 2026 revenue growth estimate to 25% and has a significant deferred revenue balance, indicating a strong future pipeline. Analysts predict a potential 33% stock price increase.

WPP Merges Agencies and Cuts Jobs to Counter AI Threat

Advertising giant WPP is merging its ad agencies, including Ogilvy, VML, and AKQA, under a new 'WPP Creative' umbrella to become a simpler, lower-cost, AI-enabled business. The company aims to achieve £500 million in annual savings by 2028, partly through job cuts from its 100,000-strong workforce. This restructuring follows a 3.6% drop in comparable revenue for 2025 and a 26% fall in profit before tax. WPP forecasts a mid- to high-single-digit revenue drop in the first half of this year.

Gushwork Raises $9 Million for AI Search Lead Generation

India-founded startup Gushwork has raised $9 million in seed funding to focus on AI-powered search for customer leads. The company uses AI agents to create search-optimized content and build backlinks, helping businesses improve online visibility. Gushwork has over 300 paying customers and is generating about $1.5 million in annualized recurring revenue. Early results show that AI-driven search platforms account for 40% of inbound leads, translating into significant business outcomes for clients.

Intel Partners with Community Colleges for AI Workforce Development

Intel is collaborating with community colleges across the US to develop the next generation of AI talent. This initiative aims to build a skilled technical workforce for AI development. Intel is also highlighting the SambaNova SN50 AI accelerator, which is reportedly five times faster than Nvidia's B200. SambaNova's CEO stated the focus is on efficiently powering data centers with AI agents at a cost-effective rate.

AI Disruption Fears Overblown, Analysts Say

Investors are selling off stocks perceived as vulnerable to AI disruption, leading to swift selloffs across various industries like software and legal tech. However, analysts suggest some of these fears are overblown and that certain companies are now undervalued. Morningstar analysts believe that for most software and legal tech firms, AI does not pose a significant threat and may even bolster growth, with many stocks now appearing significantly undervalued.

Indian IT Stocks Face Steep Declines Amid AI Concerns

Indian IT stocks are experiencing their sharpest monthly declines since 2008 due to global concerns about AI disrupting the software sector. Despite major tech companies announcing partnerships with Indian IT firms to boost AI adoption, the Nifty IT Index has fallen significantly. Analysts from Jefferies have lowered price targets and downgraded many large Indian IT companies. While AI presents opportunities, it also poses long-term challenges to the labor arbitrage business model of these firms.

Tech Stocks Slide as AI Spending Worries Return

Tech stocks experienced a decline, with the Nasdaq falling 1.5%. This downturn occurred despite Nvidia reporting better-than-expected results on Wednesday. The market is showing renewed concerns about the sustainability and pace of AI spending.

Sources

• US stock market today: Why Dow up while Nasdaq and S&P 500 fall — Is Nvidia stock crash signaling AI trade
• Stock market today: Dow, S&P 500, Nasdaq sink as Nvidia leaves investors wanting more
• Stock market today: Dow climbs, S&P 500 and Nasdaq slip as Nvidia leaves investors wanting more
• Down 41%, Is This AI Stock a Buy?
• Prediction: These Artificial Intelligence (AI) Stocks Will Be the Surprise Winners of the Software Sell-Off in 2026
• Nvidia's strong quarter and outsized guidance soothe fears of an AI investment bubble
• 1 Underrated Artificial Intelligence (AI) Stock to Buy Before It Jumps 33%, According to Wall Street
• WPP to merge ad agencies and cut jobs in radical shake-up to counter AI threat
• Gushwork bets on AI search for customer leads — and early results are emerging
• Community Colleges Prove Fertile Ground for AI’s Next Generation: Intel Stock (NASDAQ:INTC) Gains
• Investors Are Dumping AI ‘Loser’ Stocks – but Are the Worries Overblown?
• CNBC's Inside India newsletter: As AI shockwaves hit global software firms, what’s in store for India’s IT titans?
• Tech stocks slide as AI spending fears return