Cisco reported quarterly sales of $17.3 billion, an 18% year-over-year increase that set a new company record. The networking giant benefited from strong demand for infrastructure equipment used in artificial intelligence data centers, positioning itself as a key supplier of the switches, routers, and silicon that connect AI computing clusters. Management also issued fiscal 2027 revenue guidance of $72.2 billion to $73.4 billion, exceeding analyst consensus estimates.

Despite the sales milestone, Cisco shares fell approximately 6–7%. The company's gross margin contracted to 66.3% from 68.4% in the same period last year, and forward margin guidance fell short of Wall Street expectations. Cisco's growing emphasis on AI hardware components is driving revenue growth while simultaneously pressuring profitability metrics—a pattern that has surfaced across the AI hardware supply chain as companies absorb higher manufacturing and R&D costs to scale quickly.

Cerebras Systems reported second-quarter GAAP revenue of $180.1 million, representing roughly 70% year-over-year growth. Core revenue reached $209.9 million, leading the company to raise its full-year core revenue outlook to a range of $880 million to $890 million. Core gross margin came in at 41%, and the company's order backlog of approximately $25 billion held steady through the quarter. As a maker of wafer-scale AI chips competing against established semiconductor players, Cerebras faces inherent cost pressures as it scales production capacity.

Even so, Cerebras shares dropped 15–17% following the announcement. The market reactions to both Cisco and Cerebras underscore a shift in investor expectations: revenue growth alone is no longer sufficient, as profit margins and bottom-line performance have become central criteria in evaluating AI-related stocks. The shift marks a notable evolution from 2023 and early 2024, when top-line expansion routinely dominated valuation discussions across the AI sector.

Equity markets moved higher on Thursday. The S&P 500 reached a new intraday high following the release of July's Producer Price Index, which came in below analyst forecasts. Producer prices were unchanged month-over-month, compared with the expected 0.2% increase. Year-over-year PPI inflation decelerated to 4.7% from the prior month's 5.5% reading. The data reinforced signs that wholesale price pressures are continuing to moderate, easing market concerns about further Federal Reserve interest rate hikes. Major technology companies including Nvidia, Microsoft, and Apple posted gains following the release.

Oil prices declined sharply on Thursday. Brent crude fell approximately 2.2% to around $87 per barrel, while West Texas Intermediate dropped to roughly $81. The sell-off was triggered by an unexpected build of 17.4 million barrels in U.S. crude stockpiles, the largest weekly increase since January 2023. OPEC also lowered its forecast for global oil demand growth in 2026, joining other energy agencies that have flagged weakening consumption tied to economic slowdown concerns. Sustained weakness in crude prices could contribute to easing broader inflationary pressures across the economy.

Hedge fund manager Bill Ackman has re-entered Netflix as part of a significant restructuring of the Pershing Square portfolio. Regulatory filings disclosed six new positions: Netflix, Visa, Mastercard, Alcon, Intercontinental Exchange, and S&P Global.

Ackman first took a stake in Netflix in early 2022 but sold the position within months at a loss exceeding $400 million after disappointing subscriber growth data sent the stock lower. His renewed investment comes as Netflix has launched an advertising-supported tier and expanded into live sports programming—strategic shifts aimed at diversifying revenue beyond its core subscription model as the streaming market matures. The overhaul ranks among Pershing Square's most extensive portfolio adjustments in recent years.