AI Sector Seeks Direction on Earnings and Fed Catalysts
The AI sector has two major catalysts this week: Nvidia's earnings and the Fed's annual conference. In response, several stocks are showing promising signals.
Salesforce (NYSE: CRM) is one of them. The company reports Q2 earnings on August 26, and its setup is clean. Agentforce ARR crossed $1 billion in Q1, and combined Agentforce plus Data Cloud ARR is up over 200% year-over-year. BMO Capital raised its price target to $230 from $215 in August.
Tesla (NASDAQ: TSLA) also shows promise after Nevada approved a 5,000-vehicle commercial robotaxi fleet. The stock has recovered 13.5% over the past month and now trades just below its 50-day moving average at $365. Confirmation comes on the earnings print: revenue growth above 20% with Agentforce ARR continuing to accelerate would justify the $230 target.
Nvidia (NASDAQ: NVDA) earnings this week are the single biggest catalyst for the entire AI sector. The stock closed Friday at $214.72, sitting just above its 20-day moving average at $213, which has acted as short-term support. Weekly $225 calls (exp Aug 29) priced near $3-5 per contract offer a defined-risk way to play an earnings beat.