Stock Market Summary – August 28, 2025

Two unnamed customers accounted for 39% of Nvidia’s Q2 revenue, catalyzing debates about the company’s growth being influenced by large cloud providers like Microsoft, Amazon, Google, and Oracle. Despite falling short of investor’s high expectations with its latest earnings, stock in Nvidia is up for the week and its AI-related technology stocks remain robust, including Broadcom, Advanced Micro Devices, Microsoft, and Dell. This suggests the market sees no halt in AI investment.

Within the energy sector, traditional oil and gas investments have not provided the largest returns for investors in 2025. Instead, the power generation sector in the U.S. and the anticipated transformation of the electric grid due to increasing demand from AI data centers and other factors have become more attractive investments.

Despite initial investor concern over Nvidia’s latest earnings, companies linked to the AI trade, including GE Vernova, Eaton, and Broadcom, all saw positive gains. Meanwhile, CrowdStrike shares rose after its quarter results beat key metrics.

Pharmaceutical stocks appeared unaffected by new Covid vaccine authorization policy changes. Relaxed interest in Covid-related products and changes to vaccine rules for insurers have heightened risk in the sector, but it’s anticipated that the future holds a rebound for key stocks such as Pfizer, Moderna, BioNTech, and Novavax.

Pure Storage’s stock has soared more than 30% after it became Meta’s key storage provider, a deal boosting its Q2 results and raising its outlook for the fiscal year. It reported a 13% revenue growth of $861 million, exceeding the average analyst estimate.

Stocks seeing the most movement included Nvidia, Pure Storage, Snowflake, and Hormel. Nvidia’s stock slipped by 1% after its data center revenues fell below estimates for two consecutive quarters. Pure Storage shares jumped by over 30% following its Q2 results. Snowflake’s stock rallied 18% following increased revenue and earnings per share beyond analysts expectations. However, Hormel’s shares fell more than 13% to a 52-week low after warning profits would be lower than expected amid higher commodity costs.

Among the companies discussed by Jim Cramer, dollar general stood out, exceeding expectations and raising their guidance, resulting in a 4% stock jump.

Nvidia’s latest earnings report showed a 56% sales surge to $46.74 billion, aligning with Wall Street’s expectations. However, investors are expressing concerns over Nvidia’s future in China.

In premarket movements, notable companies included Dollar General, with shares rising 6% after reporting a second-quarter earnings and revenue beat and increasing its full-year guidance. Meanwhile, Pure Storage shares rose 13% after reporting revenues of $861 million and adjusted earnings per share of 43 cents, both beating estimates.