1. Tech sector ends August with mixed performance
The last week of August was mixed for the tech sector as investors anticipated earnings reports from NVIDIA (NASDAQ:NVDA), Dell (NYSE:DELL) and Crowdstrike (NASDAQ:CRWD).After a strong start, the Nasdaq Composite (INDEXNASDAQ:.IXIC) and S&P 500 (INDEXSP:.INX) fell short on Monday (August 26), with a chip stock selloff pulling the Nasdaq Composite down 0.63 percent from its opening value. Losses extended into Tuesday (August 27), with both indexes opening marginally lower only to advance slightly in midday trading, then reverse course to close 0.57 and 0.18 percent lower, respectively.
Chart via Google Finance.Super Micro Computer performance, August 26 to August 30, 2024.On Wednesday (August 28), the S&P 500 opened half a percent higher, while the Nasdaq Composite rose by over a full percentage point on hopes of another stellar performance by NVIDIA. The enthusiasm was short-lived, however, and an over 17 percent plunge in Super Micro Computer’s (NASDAQ:SMCI) share price weighed heavily on the index. Super Micro announced early on Wednesday that it would delay filing its 10-K form for its 2024 fiscal year in order to “assess its internal controls over financial reporting,”. It lost 0.9 percent in the first two hours of trading and ultimately closed 1.23 percent below its opening value. Losses to tech stocks continued in after-hours trading.
Thursday’s (August 29) markets saw an increase across the board after initial jobless claims data revealed claims for the previous week were marginally lower than expected. Second quarter GDP growth was also higher than expected, easing lingering recession fears. The S&P 500 saw little change throughout the day, while the Nasdaq declined by as much as 0.73 percent to reach 17,482.6, largely due to a continuing drop in AI-related stocks. Friday’s (August 39) core PCE price index report showed that consumer spending had increased in July, capping off the summer on a high note. All indexes closed at near-record high levels, with the Nasdaq-100 (INDEXNASDAQ:NDX) 1.29 percent higher, the S&P 500 advancing 1.01 percent and the Nasdaq Composite index 1.13 percent above its opening value.
2. Bitcoin and Ether prices fall
On Monday, Ether and Bitcoin began to decline after maintaining their gains from Friday over the weekend, opening in the range of US$2,700 and US$63,500, respectively. Losses mounted quickly for each, culminating in an 11.53 percent drop for Ether and an 8.68 percent drop for Bitcoin by Tuesday evening (August 27). The downtrend might have been attributed to profit taking following the weekend rally, as call options at the US$100,000 level indicate a lingering bullish sentiment despite the dip in price. Shortly after the market closure on Tuesday, Ether lost six percent of its value in a little over an hour. Bitcoin saw a 6.17 percent loss in the same period. Bitcoin’s price recovered slightly by Wednesday morning, but it struggled to hold above US$60,000 all week, only briefly reaching US$61,009 late on Thursday morning, perhaps boosted by better-than-expected GDP figures. Ether’s price movements followed a similar pattern, but it remained stuck below US$2,600 all week. The number one cryptocurrency continued to decline on Friday, with a 2.84 percent drop observed midday, resulting in losses totaling seven percent over seven days, concluding the final trading day in August valued at US$59,200. The value of Ether also decreased on Friday, dropping by just over three percent in the afternoon and 8.5 percent for the week.
3. NVIDIA, Crowdstrike and Dell release results
This week brought another round of earnings reports from tech industry giants — NVIDIA and Crowdstrike both reported on Wednesday (August 28), while Dell’s results came on Thursday (August 29). NVIDIA had high expectations to live up to, with its previous two earnings reports showing revenue growth of 22 percent for Q4 2024 and 18 percent for Q1 2025. While Wednesday’s Q2 2025 results went above analysts’ expectations and revealed revenue above US$30 billion, its quarterly revenue growth was only 15 percent, less than the previous two cycles, suggesting the boom era of AI might be slowing down. Investor disappointment was evident in NVIDIA’s share price, which had fallen 1.94 percent by the day’s end. Losses extended into after-hours trading. NVIDIA’s share price is down by 7.9 percent for the week.Meanwhile, CrowdStrike’s quarterly results were closely watched after a defect in a system upgrade caused global computer outages on July 19, costing US Fortune 500 companies across multiple industries an estimated US$5.4 billion and sending shares of CrowdStrike down by 15 percent, a loss from which the company has yet to recover. Its earnings report was better than anticipated, with its quarterly revenue of US$963.9 million compared to the expected US$959 million, a 32 percent increase compared to the first quarter. However, its full-year guidance was reduced from US$3.93 to US$4.03 earnings per share (EPS) to US$3.61 to US$3.65 EPS. Revenue for the fiscal year 2025 was also reduced to US$3.89 billion to US$3.90 billion from US$3.98 billion to US$4.01 billion due to costs tied to the outage. The company’s share price is up 2.62 percent for the week. Finally, Dell’s results revealed 80 percent growth in server sales compared to a year ago. The company also increased its full-year revenue guidance to US$95.5 billion to US$98.5 billion from US$93.5 billion to US$97.5 billion, sending shares up by over 3 percent after hours. Dell stock is up 54.49 percent year-to-date and 4.33 percent for the week.
4. OpenAI seeks billions in new funding round
OpenAI is reportedly in discussion to raise several billion dollars in a new funding round led by Thrive Capital. According to sources for Bloomberg, Thrive will contribute US$1 billion, with tech heavyweights Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and NVIDIA also in talks to fund the round, although no amounts have been disclosed. If successful, the latest round of funding would give OpenAI a valuation above US$100 billion, more than any other artificial intelligence start-up to date. According to company insiders, OpenAI’s CFO Sarah Friar told staff that the company was seeking capital in a memo on Wednesday, but did not divulge any details. Reps for all companies involved have not issued any official word on the matter.
5. Google releases new Gemini features
Google began rolling out two new features for Gemini Advanced Business and Enterprise subscribers on Wednesday. Gems, custom versions of Gemini that can be written for specific goals, became available immediately following the company’s press release. Imagen 3, Google’s newest image generation model, will become available “over the coming days”. Both features were previewed at Google I/O in May.A set of preloaded Gems was launched alongside the customizable model: a learning coach, brainstormer, career guide, writing editor and coding partner. Imagen 3 “sets a new standard for image quality” and can create images using fewer language prompts and in multiple styles..
Don’t forget to follow us @INN_Technology for real-time news updates!Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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