A Thursday Flutter: Or, the Market’s Latest Fancies

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Now, I’ve been watchin’ these stock markets for a good many years, and let me tell you, it’s mostly a game of shadows and whispers. Folks get riled up over nothin’ and then declare it the dawn of a new age, or the end of everything. Lately, they’ve been particularly giddy. This here S&P 500, they say it’s climbed seventy-three percent in three years. And the Nasdaq? Near doubled. Why, a body might think they’re printin’ money back there, ‘stead of just movin’ numbers on a screen. They claim it’s all thanks to this “artificial intelligence” – a fancy name for machines doin’ what folks used to do, only faster and with less common sense.

But lately, a bit of a shiver’s gone through the crowd. These software companies, the ones sellin’ dreams in the cloud, they’ve been takin’ a tumble. Seems some new contraption, cooked up by a clever feller named Anthropic, is threatenin’ to make their wares look a bit…redundant. Folks are talkin’ about a “SaaSpocalyse,” which sounds like somethin’ out of a dime novel, but is, in truth, just the usual panic when a new gadget comes along. It’s a right comical sight, really, watchin’ these high-falutin’ investors scramble like hens when their golden goose looks a little ruffled.

Come Wednesday evenin’, two reports are due to be released – one from Nvidia, the maker of these powerful “chips” that power this AI business, and another from Salesforce, the king of cloud software. And that, my friends, is why Thursday could be a day of some excitement, or perhaps a good deal of disappointment. It all depends on which way the wind blows, and how much hot air these companies are sellin’.

These Here Graphics Chips

Now, Nvidia. That’s a name you’re hearin’ a lot these days. They’ve made a fortune sellin’ these graphics processin’ units – what they call GPUs – to anyone who wants to build one of these AI contraptions. Their stock has gone up something fierce – twelve hundred percent since early 2023, they say. A body could retire on that kind of return, or lose it all chasin’ the next big thing. They’ve become a sort of barometer for this AI craze, so everyone’s watchin’ to see if they can keep the good times rollin’.

Last quarter, they raked in fifty-seven billion dollars, a sixty-two percent jump from the year before. And their profits? Up sixty-seven percent. Their CEO, a feller named Jensen Huang, claims their new chips are flyin’ off the shelves. He says demand is “off the charts.” Sounds a bit boastful, if you ask me, but then again, what CEO doesn’t like to brag a little? They’re predictin’ even more growth this quarter, projectin’ sixty-five billion in revenue. Wall Street, naturally, is equally optimistic. They’re expectin’ a similar number.

Investors will be scrutinizin’ every number, every word, lookin’ for any sign that this AI boom is slowin’ down. Nvidia makes up a sizable chunk of the S&P 500 – over seven percent, they say – so their report could send ripples through the whole market. It could send stocks climbin’, or send ’em plummetin’. It’s a gamble, pure and simple.

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The Fate of the Software Sellers

Now, Salesforce. They’ve been sellin’ this cloud software for years, and they’ve become mighty successful doin’ it. But this Anthropic contraption is givin’ folks pause. If this new technology can do the same things as their software, but cheaper and faster, well, that’s a problem. Salesforce stock has already taken a hit, fallin’ thirty percent this year. Investors are worried, and rightly so.

Last quarter, Salesforce brought in ten and a half billion dollars, a nine percent increase. Their profits were up thirty-eight percent. But more importantly, they’ve got a lot of contracts in the pipeline – fifty-nine and a half billion dollars worth. That’s a good sign, showin’ that folks are still willin’ to pay for their services. They’re predictin’ eleven and a half billion in revenue next quarter, but profits are expected to fall fifteen percent. They’re investin’ heavily in AI, hopin’ to stay ahead of the curve.

Salesforce ain’t the biggest fish in the S&P 500 – they only make up a tiny fraction of it – but they’re a bellwether for the software industry. If they’re doin’ well, it suggests that the software market as a whole is healthy. If they’re strugglin’, well, that’s a bad sign for everyone.

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Watchin’ and Waitin’

So, there you have it. Nvidia and Salesforce will both be reportin’ their earnings after the market closes on Wednesday. Nvidia will give us a glimpse into the demand for these AI chips, and Salesforce will tell us whether the software market is holdin’ strong. It’s a high-stakes game, and a lot of money is on the line.

Now, that Jensen Huang feller, he’s a smart one. He was asked about this AI disruption, and he said all this panic is overblown. He said folks are makin’ a mistake thinkin’ AI will replace software. “AI will use existing solutions,” he said. “Would you use a hammer or invent a new hammer?” A sensible question, if you ask me. He argues that these software companies ain’t goin’ anywhere. But then again, he’s got a vested interest in seein’ them succeed.

We’ll have a clearer picture on Thursday, or maybe we won’t. The market, you see, is a fickle beast. It’s driven by fear and greed, hope and despair. And no matter how much data you collect, or how many experts you consult, it’s always a gamble. But that, my friends, is what makes it so interestin’.

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2026-02-23 11:33