3. Blowout report from Nvidia
Nvidia shares soared after the chip maker posted a big earnings beat and offered sales guidance way above Wall Street’s estimates. The stock was already up 109% this year going into the earnings report after the bell Wednesday. The company is riding an artificial intelligence-driven wave of demand for chips. Its data center business posted a 14% increase in quarterly revenue. As CNBC’s Kif Leswing points out, this robust result shows how important AI chips are becoming for cloud vendors and other companies running a lot of servers.
4. Ups and downs at the mall
It’s a tale of two mall retailers. American Eagle Outfitters’ shares plunged 19% in off-hours trading after the company said Wednesday afternoon it lowered its outlook for revenue and operating income for the year, citing a slowdown in sales heading into the current quarter. American Eagle also had a tough act to follow. Before the bell Wednesday, rival Abercrombie & Fitch posted a surprise profit and raised its guidance for the year. That, in turn, sparked a monster rally in the stock. Shares surged 31%, accounting for nearly all of Abercrombie’s gains this year.
5. Awkward …
In Twitter Spaces, no one can hear you stream. At least that was the case Wednesday night for Florida Gov. Ron DeSantis, Twitter owner and Tesla CEO Elon Musk and conservative tech investor David Sacks. DeSantis was set to announce his (already established and widely known) candidacy for presidency at 6 p.m. ET, but numerous glitches and crashes forced the men to shut down the livestream after about 25 minutes. They blamed server issues because more than 500,000 people piled into the stream. They started a second one, which went much more smoothly from a tech perspective and drew about 300,000 listeners. DeSantis supporters spun the disastrous rollout as a positive, saying it was a sign that DeSantis was generating excitement. But, as CNBC’s Kevin Breuninger noted, an audience of that size would be considered a ratings disappointment on primetime cable news.
— CNBC’s Mike Calia wrote this newsletter. Sarah Min, Christina Wilkie, Emma Kinery, Darla Mercado, Kif Leswing, Gabrielle Fonrouge, Melissa Repko and Kevin Breuninger contributed.
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