Tech investors were eyeing results from major companies as the last week of August unfolded.
Meanwhile, Bitcoin and Ether prices experienced declines during the five day period, while Google’s (NASDAQ:GOOGL) Gemini platform received a boost with the rollout of two new features.
OpenAI also made headlines — it is reportedly in discussions to launch a substantial funding round that could give it the distinction of being the highest-valued artificial intelligence (AI) startup to date.
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; they then reversed course to close 0.57 and 0.18 percent lower, respectively.
Super Micro Computer performance, August 26 to August 30, 2024.
Chart via Google Finance.
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 from NVIDIA. The enthusiasm was short-lived, however, and an over 17 percent plunge in Super Micro Computer’s (NASDAQ:SMCI) share price weighed on the index.
Super Micro announced early on Wednesday that it will delay filing the 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.
Market saw an increase across the board on Thursday (August 29) after initial US jobless claims data revealed that claims for last were marginally lower than expected by market watchers. The country’s second quarter GDP growth was also higher than expected. The S&P 500 saw little change throughout the day, while the Nasdaq Composite declined by as much as 0.73 percent to reach 17,482.6, largely due to a continuing drop in AI-related stocks.
Friday (August 39) brought the release of the latest personal consumption expenditures price index data out of the US. It shows that consumer spending 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 1.13 percent above its opening value.
2. Bitcoin and Ether prices fall
Ether and Bitcoin prices began declining on Monday after maintaining gains from the previous week over the weekend; they opened around 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 (August 27) evening.
Experts have attributed these downtrends to profit taking following the weekend rally. Shortly markets closed on Tuesday, Ether lost 6 percent of its value in a little over an hour. Bitcoin saw a 6.17 percent loss in the same period.
Bitcoin had recovered slightly by Wednesday morning, but 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 7 percent over seven days; Bitcoin ended the final trading day in August at US$59,200. The value of Ether also decreased on Friday, dropping by just over 3 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 after seeing revenue growth of 22 percent in its fourth fiscal quarter of 2024, and 18 percent in its first fiscal quarter of 2025. Wednesday’s results, which cover the company’s second fiscal quarter of 2025, exceeded analysts’ expectations, with NVIDIA reporting revenue of over US$30 billion. However, its quarterly revenue growth was only 15 percent, less than the previous two cycles, suggesting the AI boom may be slowing.
Investor disappointment was evident in NVIDIA’s share price, fell 1.94 percent by the day’s end. Losses extended into after-hours trading, and NVIDIA’s share price is down 7.9 percent for the week.
Crowdstrike’s results, also for its second fiscal quarter of 2025, were closely watched after a defect in a system upgrade caused global computer outages on July 19, costing Fortune 500 companies an estimated US$5.4 billion
The company’s performance was better than anticipated, with its quarterly revenue reaching US$963.9 million compared to the expected US$959 million, a 32 percent increase compared to the previous quarter.
However, Crowdstrike reduced its full-year earnings per share guidance to US$3.61 to US$3.65, down from US$3.93 to US$4.03. It also cut revenue guidance for its full 2025 fiscal year to US$3.89 billion to US$3.9 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 for its second fiscal quarter of 2025 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, up from US$93.5 billion to US$97.5 billion. Dell shares are 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 talks 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 looking to add unspecified amounts.
No reps for any of the companies involved have issued official statements. However, insiders have said OpenAI CFO Sarah Friar told staff the company is seeking capital in a memo on Wednesday. If successful, the latest round of funding will give OpenAI a valuation above US$100 billion, more than any other AI startup to date.
5. Google releases new Gemini features
Google began rolling out two new features for Gemini Advanced Business and Enterprise subscribers on Wednesday. Gems, which are custom versions of Gemini that can be written for specific goals, became available immediately after the company’s press release was issued. Alongside the customizable Gems, google has launched a set of preloaded Gems: a learning coach, a brainstormer, a career guide, a writing editor and a coding partner.
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. The company states that Imagen 3 “sets a new standard for image quality,” and can create images using fewer language prompts and in multiple styles.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.