Financial reports first.
Nvidia’s fourth quarter earnings report exceeded expectations, with a revenue of thirty-nine point three billion dollars, reflecting a seventy-eight percent increase from the previous year. Net income also surged to twenty-two point one billion dollars, up eighty percent compared to last year. The company noted strong demand for its latest GPU architecture, Blackwell, which generated eleven billion dollars in revenue during the quarter. Nvidia’s data center sales, totaling thirty-five point six billion dollars, accounted for the majority of its revenue, marking a ninety-three percent year-over-year increase. Despite these positive results, Nvidia’s stock faced fluctuations in after-hours trading, partly due to a decline in gross margins attributed to a transition to more complex systems.
Salesforce has forecasted its fiscal 2026 revenue to fall below Wall Street expectations, projecting between forty billion five hundred million and forty billion nine hundred million dollars. This disappointing outlook is attributed to slower adoption of its Agentforce platform, leading to a five percent drop in the company’s shares during extended trading. Industry analyst Rebecca Wettemann noted that many enterprises are hesitant to invest further in generative AI technologies until Salesforce can demonstrate the effectiveness of Agentforce, following a trend of cautious spending amid high interest rates and economic uncertainty.
Why do we care?
So, we care for two reasons. First, the AI hype is still driving GPU sales, despite evidence LLMs don’t necessarily require the most high end chips. That said, it is likely a bit too early to see the slow down. I’d anticipate it.
Second, Salesforce’s inability to sell Agentforce should be a caution indicator. Salesforce’s trouble with Agentforce is an example of the AI monetization challenge—businesses aren’t automatically paying for AI-infused products without clear, tangible ROI. The hesitation suggests that many enterprises are still in wait-and-see mode when it comes to generative AI adoption.
Clients will need help evaluating whether AI solutions actually move the needle for their business. If even Salesforce struggles to drive adoption, it’s a warning that AI hype alone isn’t enough to close deals. Clients will demand proof, and those who can provide that validation—through consulting, pilot projects, or ROI analysis—will be well-positioned.
