Investing.com’s stocks of the week

Investing.com -- Software and AI results dominated the week, with Nvidia's blowout quarter, a huge move higher for Salesforce, and strong numbers across cybersecurity. However, PayPal shares have gone the other way.

Here are Investing.com's stocks of the week:

Nvidia

Nvidia rose 8.7% on Thursday after another set of strong results, though the stock has given back 3.7% so far on Friday, leaving it broadly flat over the week with a gain of 0.2%.

The chipmaker reported fiscal second-quarter earnings of $2.22 per share on revenue of $96.2 billion, up 106% year-over-year.

Third-quarter revenue guidance of $108 billion, plus or minus 2%, comfortably cleared the $104.2 billion analysts had expected, and excludes any data center sales from China.

Barclays analyst Tom O'Malley kept an Overweight rating and $275 target on NVDA, highlighting the "impressive top-line growth forecast."

He noted that around 25% of total company revenue next year is expected to come from AI labs. Morgan Stanley's Joseph Moore said Nvidia remains a Top Pick "with a compelling product cycle, exceptional growth, and valuation below peers."

Salesforce

Salesforce was a standout, surging 22.6% on Thursday and adding a further 3.6% so far on Friday, putting it on track for a weekly gain of more than 27%.

Second-quarter adjusted earnings of $5.90 per share smashed the $3.27 consensus, while revenue of $11.3 billion matched estimates and rose 11% year-over-year.

Raymond James analysts said the guidance stands out against peers. "The news comes in stark contrast to other front-office software vendors that referenced extended sales cycles through 2026, and points to potential advantages for Salesforce," the firm wrote.

Bank of America analyst Tal Liani said "the big picture is solid, even if the details are more mixed," adding that the quarter was encouraging because it challenges the view that AI will displace Salesforce.

He said the debate is shifting from whether CRM platforms will be replaced by AI to how effectively Salesforce can monetize it.

Cybersecurity stocks

Okta and CrowdStrike both delivered strong results, sparking sharp rallies across the sector.

Okta jumped 28.6% on Thursday and has climbed 24.9% over the week after second-quarter earnings and revenue beat estimates alongside strong full-year guidance.

BMO Capital analyst Keith Bachman raised his price target to $187 from $168, maintaining an Outperform rating and Top Pick designation, pointing to a current remaining performance obligations beat of around three points and accelerating CRPO growth. Management said AI is not yet contributing materially to bookings but is expanding the pipeline, which Bachman believes points to acceleration potential in fiscal 2028.

CrowdStrike rose 20.5% on Thursday and is up 14% over the week on an earnings beat and raised outlook.

Citizens analyst Rustam Kanga reiterated a Market Outperform rating and $230 price target, citing durable growth across Falcon Cloud Security, Falcon Identity Protection and Next-Gen SIEM, and a product portfolio he views as "still underpenetrated."

He also flagged the company's pace of innovation around AI, including its Charlotte AI digital security analyst.

PayPal

PayPal is a significant decliner, sliding 12.5% on Friday and 13.5% over the week after Bloomberg reported Thursday evening that a consortium of Advent International and Stripe had abandoned its pursuit of the payments company.

Shares fell sharply after the report, unwinding the premium that had built up around the prospect of a deal.

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