Nvidia and Salesforce Fuel AI Trade with Guidance Boosts

Nvidia's latest earnings report has sent shockwaves through the market, and it's not just about beating expectations. The real story is in the company's guidance, which reflects a growing demand for its products.

Jensen Huang, Nvidia's CEO, noted that the forward guide is not just about what customers can ship, but also about the deeper and wider order book they have compared to last year. Unlike last year, this year's orders come from new labs, startups, regional players, and regular enterprises.

The supply chain constraint is physical, with memory and other bill of materials being tight across the industry. This has led to a floor in the guidance number, but the demand behind it is larger.

In related news, Salesforce also raised its outlook and moved full-year sales guidance higher. The company cleared the bar on the quarter and reported near-term earnings guidance above expectations.