Nvidia and Salesforce earnings in-focus as AI enters its second wave

The first wave of the AI boom was all fire and flash, jaw-dropping demos, GPU shortages, and enough hype to power a small data centre. But as earnings season kicks off, investors are shifting focus from spectacle to substance. The question now isn’t just what AI can do but who’s making it work at scale, and more importantly, who’s getting paid for it.

Nvidia and Salesforce sit on opposite ends of the AI value chain, but both are gearing up for closely watched earnings reports this week. Nvidia, the undisputed king of AI hardware, has ridden a historic surge in demand - but regulatory pressure and rising competition are starting to nip at its heels. Salesforce, meanwhile, is trying to prove that its AI-powered platform, Agentforce, is more than just a shiny new add-on - it’s a growth engine for the next phase of enterprise tech.

As generative AI moves from labs and headlines to boardrooms and balance sheets, the stakes are shifting. It’s not about who got in early; it’s about who can lead the second wave.

Nvidia: Riding high, but with a few clouds overhead

Let’s start with Nvidia. Wall Street expects a blowout quarter again, continuing its period of impressive revenue growth.

The chipmaker is forecast to post $43.4 billion in revenue, up a staggering 66% year-on-year, and net income of over $21 billion. That’s what happens when your GPUs are effectively the backbone of modern AI.

But even tech royalty can’t ignore geopolitics. Export restrictions to China have already cost Nvidia billions - a $5.5 billion charge related to its H20 chips, to be exact. CEO Jensen Huang hasn’t minced words, calling the US policy a “failure” that’s done more harm to American innovation than to China’s ambitions. Add in supply constraints and Big Tech firms cooking up their own chips, and the road ahead looks a little bumpier than the last few quarters.

Still, Nvidia remains the gold standard in AI infrastructure. The question is whether its valuation reflects future potential or is already priced for perfection. Investors will be listening carefully for any signs of softening demand, especially as the world moves from AI development to AI deployment.

Salesforce AI integration: From promises to proof points

If Nvidia is the arms dealer of the AI boom, Salesforce is trying to be the strategist - selling tools that help businesses actually use AI. Its latest push comes in the form of Agentforce, an AI-powered platform that’s seen solid early traction with over 3,000 paying customers. It’s slick, it’s integrated with Slack, and it’s designed to supercharge customer service, sales forecasting, and more.

But the bar is high. Salesforce’s core revenue growth has slowed to around 9%, and while its margins and cash flow are improving, it needs to show that AI can meaningfully reaccelerate the top line. 

Analysts are expecting non-GAAP EPS of $2.54, which would be a 4% increase year-on-year - respectable, but not earth-shattering.

This quarter, Salesforce’s job is to prove that Agentforce isn’t just lipstick on a legacy platform. Can AI really help close deals faster? Can it reduce churn, increase productivity, and justify higher subscription tiers? These are the questions investors want answered.

The real test: enterprise AI in action

We’ve moved beyond the phase of AI where impressing investors was enough. Now it’s about impressing CFOs, operations leads, and IT buyers - the people who need to justify spend with real results. In that context, Nvidia and Salesforce represent two different bets on AI’s future.

Nvidia’s challenge is maintaining momentum in a maturing, competitive landscape. Salesforce’s challenge is proving its AI tools work in the real world - and that customers are willing to pay for them.

What they have in common is pressure. Pressure to meet high expectations. Pressure to show that AI is more than a line on a product roadmap or an earnings call and the pressure to deliver clarity in a market that’s already seen one hype cycle come and go.

Technical outlook: Who leads the second wave of AI?

AI’s first wave was all about possibility - building the models, the chips, the infrastructure. That story was Nvidia’s to tell. The second wave is about practicality: embedding AI into workflows, improving business outcomes, and proving ROI. That’s where companies like Salesforce need to step up.

With earnings on the horizon, the spotlight is squarely on these two tech giants. Nvidia needs to defend its crown. Salesforce needs to prove it’s earned a seat at the table.

Either way, this week could help shape the next chapter in enterprise AI - not just who’s building the future, but who’s actually selling it.

At the time of writing, Nvidia is showing some buy pressure on the daily chart. With prices currently hovering around a sell-zone there is a case to be made about a potential drawdown. However, the volume bars show that buy pressure is strengthening, building a case for a bullish move. Should bulls take over, prices could encounter a resistance wall at the $135.95 price level. If we see a significant slump, prices could find support at the $113.92 and $104.80 support level.

Salesforce on the other hand is showing some sell pressure on the daily chart within a sell-zone - hinting at potential further draw downs. The bearish narrative is also supported by the volume bars showing increased bearish momentum. Should we see a significant draw down, prices could be held at the $262.75 support level. If we see bounce, prices could encounter resistance at the $290 and $330 resistance levels. 

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