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US stock futures stalled on Thursday as Nvidia’s (NVDA) stellar earnings failed to impress investors, as Wall Street juggles growing worries over AI’s potential for payoff and disruption.

Dow Jones Industrial Average futures (YM=F) slipped just below the flatline, following solid wins for stocks more broadly on Wednesday. Contracts on the S&P 500 (ES=F) and the tech-exposed Nasdaq 100 (NQ=F) were also little changed.

Nvidia shares jumped following its after-hours report Wednesday, but pared gains amid a lukewarm response from investors. The AI chipmaker posted big beats on quarterly revenue and profit, and its guidance also came in above expectations. But a lack of detail on drivers for the outlook — which doesn’t include potential revenue out of China — left some on Wall Street asking questions about competitive threats and the staying power of AI buildout demand.

Fears of a AI bubble and the “AI scare trade” have buffeted stocks in recent weeks, with the technology’s challenge to sectors such as legacy software coming to the fore. Salesforce (CRM) shares fell about 4% to continue an AI-driven sell-off after its revenue forecast fell short of estimates.

Looking ahead on the economic calendar, investors will parse weekly jobless claims data due Thursday, followed by January’s producer price index report on Friday.

Wall Street also continues to see earnings come through, with full-year results from Big Three automaker Stellantis (STLA, STLAM.MI) expected before the bell. Quarterly reports from Warner Bros. Discovery (WBD), Dell Technologies (DELL) and CoreWeave (CRWV) are also slated for Thursday.

LIVE 5 updates

  • Nvidia’s CEO prepares investors for a renewed battle with Intel, AMD

    From Reuters:

    Nvidia (NVDA) may have made its immense fortune on the back of specialized graphics processing units (GPUs) used to power artificial intelligence servers, but CEO Jensen Huang is increasingly professing his love for the more generalist CPU.

    The CPU, or central processing unit, was for ‌decades traditionally viewed as the main brain of a computer — a product most associated with Intel (INTC) or sometimes Advanced Micro Devices (AMD).

    Huang is fond of saying ‌that where once 90% of computing used to happen on CPUs and 10% on chips like his, the ratio had flipped in recent years.

    But the CPU is now making a comeback – increasingly seen as an equivalent ​if not better option as AI companies shift from training their models to deploying them – a shift that Nvidia plans to be a big part of.

    “We love CPUs as well as GPUs,” Huang said on a call with analysts on Wednesday for the company’s fourth-quarter results.

    He assured them that Nvidia was not only ready for the CPU’s return to the spotlight, but also that Nvidia’s own CPU offerings for data centers, first released in 2023, would outcompete rivals.

    Read more here.

  • Jenny McCall

    Premarket trending tickers: Marriott Vacations, Trade Desk, and Zoom

    Marriott Vacations’ (VAC) stock rose 8% before the bell on Thursday after reporting fourth quarter earnings, with revenue exceeding analyst expectations.

    Trade Desk (TTD) stock sank 16% during premarket hours today. The technology platform reported fourth quarter earnings of $0.59 per share, beating estimates and also reported a rise in revenue. But it forecast first quarter revenue of $678 million, which fell below analyst expectations.

    Zoom (ZM) stock fell 3% before the bell on Thursday after forecasting quarterly profit below Wall Street estimates on Wednesday.

  • Salesforce stock slips after FY revenue forecast misses the mark

    Shares of Salesforce (CRM) fell almost 4% in premarket trading after the software company’s fiscal 2027 revenue forecast came in below Wall Street expectations on Wednesday.

    The San Francisco-based company flagged sluggish spending on enterprise business software ‌as it invests heavily in its AI platform to ​drive up demand.

    Reuters reports:

  • Baidu stock price drops 20% in display of China’s demands for AI sector

    Bloomberg reports:

    Read more here.

  • Nvidia pushes up in extended trading on healthy Q1 guidance and beating Q4 expectations.

    Yahoo Finance’s Dan Howley reports:

    Read more here

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