Summary of "Beyond Nvidia: Software Earnings Put AI’s Second Act on Trial"

Author: Ruben Dalfovo, Investment Strategist

Date: August 24, 2026

Key Takeaways

• Nvidia's performance will indicate AI infrastructure demand, while software earnings will assess if that spending translates into revenue.
• Companies like Salesforce, Workday, and Zoom are under scrutiny to see if AI can enhance subscription models.
• Cybersecurity and custom chips may present clearer growth narratives in the AI landscape.

Overview

Nvidia is set to dominate the earnings calendar on August 26, but the focus extends to several other companies reporting from August 24 to 26, including Intuit, Zoom, Salesforce, and others. This period serves as a critical test for the next phase of artificial intelligence (AI) development.

Software Industry Challenges

Software as a Service (SaaS) companies depend on recurring subscriptions, and AI could either bolster this model by enhancing products or undermine it by reducing the need for licenses. Salesforce's new AI agents, Agentforce, are a focal point, with expectations of 10-11% revenue growth. The key for investors is to see tangible evidence of increased customer spending and contract growth.

Cybersecurity as a Growth Area

Cybersecurity firms like CrowdStrike and Okta may offer a more straightforward narrative regarding AI growth. As AI agents proliferate, the need for robust security measures increases. CrowdStrike reported a significant annual recurring revenue (ARR) growth, while Okta's identity security solutions could drive additional growth.

Custom Chips and AI Infrastructure

Marvell's partnership with Google highlights the shift towards specialized AI chips, indicating a broader trend in the semiconductor industry. Companies like Synopsys are also positioned to benefit from this trend by providing tools for designing complex semiconductors.

Risks and Considerations

Investors should be cautious about equating AI adoption with revenue growth. A decline in contract growth or retention rates at established software companies could signal that AI is diminishing the value of traditional subscriptions. Additionally, high growth expectations for cybersecurity and custom chip companies necessitate strong performance and outlooks.

Investor Strategy

Investors are advised to:

• Differentiate between AI usage and monetization.
• Monitor customer retention and contract sizes to gauge AI's impact on existing relationships.
• Evaluate various AI exposures across sectors.
• Consider the entire value chain of AI investments.

Conclusion

While Nvidia's earnings will be a significant event, the reports from software companies will provide insights into the monetization of AI technologies. The focus will shift from merely acquiring advanced chips to maintaining ongoing customer relationships and revenue streams once those technologies are implemented.